Owning a house has always been a huge part of the elusive American Dream,. However, in the last decade or so, people have stopped seeing it as a priority. Most people living in the US now have mixed feelings about buying a house, and as a result, they lack the motivation to do so. This is mainly because Millennials (the generation that’s currently buying houses) tend to value experiences over materials, and therefore believe they should use their finances for travel rather than home ownership.
If you’ve been going back and forth over this decision, know that it’s completely natural to feel so conflicted. After all, buying a home is a huge decision, and you certainly shouldn’t make it lightly. However, whether you value experiences over materials, or are just wary about making such a momentous purchase, it’s important to note that buying a house has a vast range of benefits. With that in mind, we’re here to tell you about 5 undeniable reasons to buy a house!
A place to call your own
Nothing can compare with owning your own home. No matter how much you love your rented apartment, your own home is a space that will have a special place in your heart throughout your life. There are so many emotional benefits to buying your own home. You can express your personality through interior design (something that’s severely restricted by landlords when it comes to rented places), expand your family by bringing home new pets (which may not have been allowed in your rented space), and even plan for the future. If you’re buying a home with a loved one, you can ensure you get a place with enough bedrooms to accommodate children or family members in the future. With a rented space, as the objective is to save money, you may not opt for a home with extra bedrooms. As a result, when your family does grow, you’ll have to deal with the hassles of packing up and moving.
Additionally, it’s fair to say that nothing really beats the pride of ownership. Having your own home can make you feel like an adult – someone who is advancing in their life rather than staying stagnant. While all your friends grapple with the complexities of renting, you can lounge in your own home, content in the knowledge that this space is all yours.
A good investment
Real estate has always been considered a good investment. This is because the real estate market mostly sees an appreciation with time, even if there are minor ups and downs along the way. Thus, if your goal is to have an investment that offers high returns, then you should consider buying a home. Many people also indulge in flipping houses – the art of buying a home, renovating and updating it, and then selling it for a higher price to enjoy profits. In such situations, two factors come into play – the rising cost of real estate, and the value you add to the home through your own efforts.
Additionally, your own home works as a great investment for your children too. If you plan to leave your children your home in the future, you can rest assured knowing that they have a safety net to fall back on in case anything unfortunate happens.
A hedge against inflation
A top reason why you should make the purchase now, rather than wait, is that it gives you the power to lock in a price. Once you lock the deal, your monthly house payment will not take a hit even if the prices of houses in the area increase. Yes, you may see some fluctuations with insurance and property taxes but you can solve that issue by getting a fixed-rate mortgage. When you rent a house, the prices can and will increase from time to time. Note that if you’re planning to set aside funds for the future, doing so can be challenging when your rent keeps increasing. You’ll also have to periodically alter your lifestyle as rising rents can decrease your budget for other activities like going out, shopping, and travelling.
A means to pay less tax and save money
The interest you pay on your mortgage is deductible under your taxable income. One thing to note here is that the newer the mortgage is, the higher the interest rates are. As a result, your tax benefits are also likely to be high.
You can use your income tax returns to pay premiums for other investments and grow your wealth. Conversely, you can also save your returns for an annual family holiday to far-flung destination. The choice is, of course, all yours!
The joys of forced savings
A huge plus when it comes to buying a house is that the concept of forced savings comes into play. If you are someone who is not able to save money on a regular basis even if you want to, then buying a house can help fix this problem. Every month, a fixed portion of your income will go to pay the principal balance of your loan and you will have to set aside that amount of money no matter what.
Buying a house brings a sense of accountability and it will help in developing financially savvy habits. When it is time to sell the house, if you want to sell it, that is, all those months of forced savings will come into play as a representation of your home equity.
Buying a house doesn’t seem all that daunting now, does it? As you can see, buying a house brings you financial and emotional benefits. With so many advantages of buying a house, you should definitely explore your options instead of living in a rented house your whole life.
Our realtors can help you find your dream home in a jiffy. All you need to do is get in touch and let us introduce you to all the joys of home ownership!
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