Every individual has a dream of owning a home someday. For some, this dream never reaches fulfillment. On the other hand, many fortunate ones get the once in a lifetime opportunity of buying their own home. The following article argues in favor of purchasing a home, discussing some major benefits of obtaining private home ownership.
Low Interest Rates and mortgage interest tax deduction
As of now, interest rates are at an all time low and so it is just about the perfect time to obtain a mortgage loan. Due to the low interest rate the total amount to be paid back (principal + interest) will be smaller, resulting in more affordable monthly payments. Moreover, at present there is a tax deduction available on monthly interest payments of home mortgages.
Improved stability and affordability
Homeownership leads to a more settled life, promoting growth and prosperity. Research shows that a large percentage of private homeowners are involved in the local community. Their neighborhoods are safer and show higher graduation rates and annual incomes. Additionally, with the home prices dropping in many parts of the country, it is a great opportunity to buy your own home.
Pay for ownership and raise money through equity loans
When you buy a home the monthly mortgage payments go towards your share of equity in the home. Each month you increase your share of equity in the home, eventually obtaining sole ownership of the home. Once the entire mortgage amount has been paid back, you will only have insurance and property tax to worry about but otherwise the monthly costs are nominal. Compare this to renting a home, where you keep paying the landlord as long as you stay in their property; you are essentially at the mercy of the landlord. Furthermore, since your home is your asset, you can raise funds against it. If you need any upgrades or repairs to your home, you can simply obtain an equity loan.
Appreciation of property value
The value of real estate properties can fluctuate with time. However, if your home meets the right criteria, its value will appreciate with time. This appreciation in value is based on several factors, namely the condition of your home and the market demands. Remember, if you have the ownership, you can make regular home improvements and steadily increase the value of your home.
Garden – your very own source of food
Whether you are an enthusiast or just health conscious, owning a home gives you the opportunity to grow your own food! Maintain your own organic garden, save money and enjoy the yields of your hard work.
Finally, as human beings we all want to have a sense of identity and belonging to the place they live in. Buying a home is the perfect way to establish your identity and leave a lasting legacy that would inspire future generation
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