One thing is certain in life, you will always need a place to seek refuge and lay your head at night. Deciding if you will own or rent that place, is a decision you must approach with thought and strategy based on your unique situation.
For some, buying a home means living the American dream, and they are already aware of the pros and cons of renting versus buying a home.
But if you are unsure which option is best for you, let’s look at the top benefits of owning a home to help put things into perspective.
Fixed Monthly Payment
Owning a home puts you in the driver seat with your monthly housing expenses, because you’ll likely have a mortgage with a fixed rate and payment amount.
Unlike rental payments, which can change with the market or whenever a landlord decides they want more money – your mortgage will stay the same, unless you decide to refinance.
One of the greatest benefits of homeownership is the opportunity to build equity. As you live in your home for a while, the value may increase based on the market.
You could take advantage of the increase by cashing out and using the equity to go on vacation, make home improvements or just to have extra cash in your bank account.
Paying taxes is inevitable, but owning a home gives you the advantage of being able to deduct monthly interest payments, mortgage insurance payments and other home-related expenses.
Potential Rental Income
After living in your home for a few years, you may be tempted to buy a new house to accommodate a growing family or for other reasons.
Instead of selling your first home, consider renting it out and collecting payments each month, or go a step further and list it on Airbnb, where you can create a stream of consistent income.
Since your credit report has a mix of different tradelines that impact your credit score, having a mortgage account in your profile and making payments on time, shows you’re a responsible borrower and will open opportunities for larger credit lines.
Owning a home is a long-term commitment and deciding if homeownership is for you takes time. By being aware of the benefits associated with owning a home, you’ll be able to assess whether you should continue to rent or make the leap to become a homeowner. Ready to learn more about homeownership? Join the Flyy Credit University today by clicking here.