Real Estate (MP) Homeownership is still a good move if you can afford it . Although, lots of rental property agents would love to convince you otherwise. Yeah, it simply helps their bottom line. But know this, homeownership still remains an intricate part of the American dream. And ownership has so many advantages compared to renting and paying for someone else dreams. Let’s take a look…
1. Rules, rules and more rules
Whether it’s the kids playing football in the living room or your loud love-making – you won’t have to worry about your neighbors complaining about the loud noise. O.k., that was me. I’m not as young as I used to be… I’m better now, Jeez.
Again, when you rent from landlords or an apartment complex, there are always rules you have to follow or you will be thrown out. Like you can only use the pool during certain hours or you have to reserve the right to use the grill and picnic area. Homeownership allows you to jump in your pool anytime (provided you have one) and don’t have to reserve or share your grill with anyone else.
2. No Rent increases
Rents in April were 4% higher than a year before, according to a report from Zillow. “That’s the fastest increase in two years, outpacing home prices which rose by 3%,” says CNN Money. Which brings to mind, you won’t have to worry about how your landlord is going to pay for his new dream vacation home.
3. You get the perks of home ownership
⇒Peace and quiet
⇒Private laundry room
4. You get tax write-offs
There aren’t many Tax deductions available to renters. But homeowners can take advantage of tax benefits such as deductions on mortgage interest and property taxes. Those who have a home equity loan can deduct the interest paid on that too. As long as you occupied your house as your primary residence for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 in taxes for a married couple of profit from capital gains.
5. A great investment
Renters throw money away every month while home owners are building a partial nest egg. Homeownership allows you to build equity with every single home mortgage payment. When your monthly mortgage payment is applied, a part of it is applied to the principle balance effectively reducing the total amount you owe. And this equity continues to grow as you pay down your mortgage and hopefully be much higher by the time your ready to sell. Effectively, as a renter you’re throwing good money down the drain.