What Are The Benefits of Home Ownership?

Think about it….no more rent checks with nothing to show for it! Buying a piece of the American Dream can be both exciting and a bit intimidating. Without the right guidance, it can also be a frustrating experience. It’s important that you not only choose an understanding and knowledgeable Realtor to represent you, but that you become familiar with the process involved in buying your first Cleveland home. This article and this website is dedicated completely to Cleveland area first-time homebuyers and your needs.

Aside from the inherent pride of ownership, there are many advantages to buying a home over renting. When renting a home, you’re paying someone else’s mortgage plus a margin of profit. They’re increasing their equity in the home while the only benefit you realize is the privilege of living in their home. It’s just like your money is going right down the drain. Take a look at all the benefits to owning your own home:

• IRS Tax benefits
• Protection from rent hikes
• Serves as an investment
• undefined undefined undefinedAbility to borrow against the equity in your home
• Provides you a sense of security and independence
• Ability to make improvements that suit your needs while increasing your equity*

(*Not all improvements yield the highest return on your investment. I will talk about this topic in the article entitled “ How Do I Build Equity?”)

Your tax benefits

Both property taxes and qualified home interest can be deducted from your taxes. Tax benefits can either save you money on the taxes you owe or provide a larger tax refund. It is recommended you seek the counsel of a tax attorney for a complete explanation of tax laws and homeownership. I would be happy to recommend several tax attorneys for your assistance.

Avoid rent increases

When renting, your landlord has the ability to increase your rent at their discretion. When you own your home and finance your home with a “fixed” rate mortgage, typically your mortgage payment will not increase. For more information on financing, be sure to read the article “ Mortgage Types-Which One Is Right For Me?”

Expand your portfolio with a major investment

For most first-time homebuyers, your home is typically the largest investment you will make in your life. Therefore, it is a great strategy to diversify your portfolio with a sound financial real estate investment. Most homes generally appreciate each year. Nationally, the average appreciation rate is around 4% or more each year.

Flexible line of credit if you need it

Sometimes unexpected expenses pop up. For individuals and families who rent, you may have difficulty coming up with money to pay for these expenses. With a home equity loan you can. What’s more, the interest rates are generally lower than those offered by credit card, plus your interest is tax deductible.

So you want to paint that wall red?

If you own your own home, you can paint it to reflect your own taste and style. You can plant a garden, renovate your kitchen, expand and so much more. When you rent, you’re limited with what you can do to the home.

Sure, renting has its benefits

There are obvious advantages to renting such as the flexibility to move as often as the lease allows and not have to be responsible for any routine upkeep and repairs. Ask yourself if these advantages outweigh the benefits of homeownership? Only you can honestly answer that question with regard to your situation. To help you understand which option fits your situation, why not read my article “ Rent Versus Buy, Which Is Right For Me?”

To find out if buying or renting is right for you, analyze the financial, situational and lifestyle pros and cons of both and see which outweighs the other. You will then have your answer. Another great tool to help with this decision is the “Rent Versus Buy Calculator.” Click here to take a look.

As you can see there are many advantages to buying your first home. As your Cleveland and Northeast Ohio area first-time homebuying expert, I will help guide you through every step until you have realized your dream of homeownership. Contact me today and we will schedule a no-obligation appointment to assess your needs.

Need homebuying advice? Give me a call on the FTHB Training Hotline today!

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