There are times when it is better for a person to rent, but most often home ownership has many more benefits and advantages. If you are like most people, you will find that homeownership is worth the risks and disadvantages.
There are times when it is better for a person to rent, but most often home ownership has many more benefits and advantages.
About 10 years ago, I had a retired aunt and uncle who rented a condo in Mumbai. Uncle Anil was a retired Banker. Throughout his career he and his wife lived in Company Quarter.
He and his wife told me that the biggest mistake they ever made was not to invest in buying a home. In their retirement years, when their other retired friends were living in homes that were almost paid off and had appreciated greatly, Uncle Anil and his wife were using a huge portion of their limited retirement money to make expensive condo rent payments. They strongly cautioned me not to make the same mistake they had.
Recent studies are showing that there are many benefits for both the owners and the community for owning your own home, including increased education for children, lower teen-age pregnancy rate and a higher lifetime annual income for children. Besides these, listed below are some of the primary advantages for owning your own house.
1) More Stable Housing Costs
Rent payments can be unpredictable and typically rise each year, but most mortgage payments remain unchanged for the entire loan period.
2) Tax Savings
Homeowners can be eligible for significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax, as well as many states’ income taxes. This can be a considerable amount of money at first, because the first few years of mortgage payments are made up mostly of interest and taxes.
3) Debt Consolidation
If you need to, you can refinance a mortgage loan to consolidate other debts (an opportunity you don’t have if you are renting.) And the interest on this is also tax deductible.
4) Equity
Instead of payments disappearing into someone else’s pocket, homeowners are building equity in their own home. This is often one of a person’s biggest investment assets. Each year that you own the home you pay more toward the principal, which is money you will get back when the home sells. It is like having a scheduled savings account that grows faster the longer you have it. If the property appreciates, and generally it does, it is like money in your pocket. And you are the one who gets to take advantage of that, not the landlord. You can then use this equity to plan for future goals like your child’s education or your retirement.
5) It is Yours!
When you own a home, you are in control. You have the freedom to decorate it and landscape it any way you wish. You can have a pet or two. No one can pop in and inspect your home and threaten to evict you.
Buying a home is an important decision. It is often the largest purchase a person makes in his or her life. Home ownership also comes with some increased responsibilities and isn’t for everyone.
When considering home ownership, you need to weight the advantages and disadvantages for yourself.
For property search fill out this form and get best offers and opportunities.