The monumental decision to become a homeowner is a great milestone to achieve. Although homeownership is accompanied by multiple responsibilities, it is counterbalanced by the benefits you are able to gain back. What harm can there be in having a dream? Here are a few advantages of achieving homeownership:
Building an Investment
Home prices are erratic and follow in unpredictable cycles, however, there is a good chance that staying in your home for long-term can increase its value. Homeownership requires a solid commitment which means it is likely that owners are able to have an established home in an area that is waiting for further development. After a few years, the neighbourhood could have completely transformed to include more shopping and leisure centres. The increase of property value is able to provide a substantial return on your investment.
Gaining Equity
Equity can be acquired from the total value of the house subtracted from the amount owed in a home loan. Therefore, the amount that is left over is the home equity or the value that belongs to you. Through homeownership, a part of the monthly mortgage payment contributes to reducing your loan which in return increases your equity. As a result, paying your mortgage is a form of savings as the home equity funds can be accessible for your future needs.
Eligible for Tax Deductions
Taxes consume a significant amount of your income, however, this can be reduced through your mortgage interest and property tax payments being deductible from federal taxes. There may also be states taxes, closing costs and loan discount points that can be considered as deductible. Although monthly mortgages can be considered a heavy burden, these deductions are actually a pathway to placing some funds back in your pocket.
Strengthening your Credit History
To be able to invest in a home and put effort in making consistent monthly payments is a way to demonstrate that you are a capable borrower to lenders, decreasing the risk of your loans being defaulted. A stable credit history in the past is an important factor to ensure loans for future expenses, such as purchasing a new car. Through buying a home, your credit history can establish a solid foundation.
Freedom to Create
Homeownership opens the doors to get exactly what you want and not have to compensate for an inadequate living environment. As opposed to renting and abiding by conditions, you are able to personalise your home from top to bottom. Whether it’s painting the rooms different colours or renovating the kitchen, there is no need to wait for approval from the landlord or wait for the lease to be renewed.
For more information regarding options when building new, investing in a house and land package or other opportunities, be sure to speak to one of our home building experts on 1800 184 284. You can also book a call at a time convenient to you.
Let us do the legwork for you.
- We’ll ask the right questions to better understand your needs
- We’ll create a recommended shortlist ideally matched to you
- We’ll answer specific questions or concerns related to home building, land purchasing or financing
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