Are you one of the many who is on the fence about purchasing a home? While there are risks involved in buying a home, there are also several advantages that often go unrecognized. Continue reading and discover a few significant benefits of purchasing a home in 2019.
Renting is significantly more expensive
Many people are scared away at the thought of homeownership because it requires a lot of money upfront. Many people advise making a downpayment of the home’s value. However, it is important to keep in mind that it is significantly more expensive to rent in the long run. According to Trulia, owning your home is 38% cheaper on average than renting nationally. While you still have to come up with a sizeable downpayment, you will pay far less in the long run by choosing to buy instead of rent.
Provides tax deductions
Many people are unaware that purchasing a home will provide them with significant tax deductions. By owning a home, you may be able to reduce the amount you pay each year in income taxes. Property tax payments and mortgage interest may be deducted from your federal taxes.
It is a long-term investment
While home prices are often unpredictable, it is important to see homeownership as an investment. While there is no guarantee, owning your home can provide you a substantial return in the long run because your property may increase in value.
Strengthens your credit history
Lenders want to see that you are a trustworthy borrower. When you purchase a home and make your payments on time, you demonstrate that you a low-risk and are unlikely to default on your loan. A strong history will help you with any major purchases down the line, like buying a car.
Allows you to build equity
The equity in your home can be calculated by subtracting the amount of money you still owe on it from the current market value. Every time you make a mortgage payment, you reduce the amount you owe and increase your equity.
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