Thanks to the recent subprime mortgage crisis, many people are wary of buying a home. However, to be a homeowner provides a number of significant advantages over renting. Here are some of the most important benefits you’ll gain when you choose to be a homeowner.
More Space And Privacy
A house provides more space and privacy than you will ever get in an apartment. You won’t have neighbors living below you or above you which means less noise and more breathing space. A house is wonderful for young children as they will want a place to play and will have access to a yard, something that is not available in an apartment. By choosing to be a homeowner, you also have more space to set up a workshop, garden or other DIY projects.
You Will No Longer Be Beholden To A Landlord
A major downside to renting is that you’re completely beholden to a landlord. You must abide by their terms and they can evict you for any reason. You cannot renovate the apartment since you do not own it, and your rent can be increased whenever the landlord sees fit. Buying a home gives you the pride of ownership and you become the “landlord” as opposed to being a tenant.
Homeownership Provides Superior Tax Advantages
The government itself seems to prefer homeowners over renters which are why they are given a number of tax benefits, such as the option to deduct interest payments for their mortgage. Buying a home also allows you to deduct certain expenses such as for home improvements which make the property more energy efficient, and some federal taxes may be avoided when the property is sold. Those who get involved in investment real estate can experience some of the best tax advantages.
Homeownership Provides Greater Financial Security
Once you’ve paid off your mortgage or purchased your house in cash, you are free and clear of the need to make monthly payments. The only thing you have to worry about is utilities and property taxes. This provides an unprecedented level of financial security that is unknown to those who rent, who must constantly pay the rent on time each month or find themselves out in the cold. If you own a house and lose a job or suffer another financial setback you don’t have to worry about eviction. If you’re in an apartment and don’t have the savings to cover your rent while you seek new employment you’re in a world of trouble.
You Can Renovate Your Home As You See Fit
The word “real estate” literally means royal estate. This is because in the past in many societies land ownership was reserved exclusively for royalty and members of the nobility. The word “landlord” and “tenant” are also borrowed from this time period. Being a homeowner gives you complete control over your property. You can renovate it whenever you want and however you want (within the building code restrictions of your jurisdiction). As a homeowner, you can even rent out the house to others, becoming a landlord yourself.