For people
considering buying a home for the first time, things can be a bit intimidating.
You just have to keep in mind the benefits far outweigh the risks.
There are
many benefits to owning a home. Sure, there are the usual obstacles to get
over. First, people don't want to put that much money into it, they'd rather
just rent.
Also, they
don't want to have to go through the lengthy process of buying the home and
even searching for the right home in the first place. Then they don't want to
have to go through the mortgage process and go into debt to get the home. While
these are definitely disadvantages, the simple fact is that there are so many
major advantages to owning a home that going through these steps ends up being
well worth it.
Tax
Benefits of Homeownership is most notable benefit to owning a home is equity. Equity
is the value of the home. When mortgaging a home, your initial equity is the
down payment you made on the home. As you make additional payments, your stake
in the equity of the home rises (since the lender owns the rest of the equity).
However, it is also important to note that equity also rises when the value of
the home rises. This equity is solely yours; the equity of the lender does not
increase. That is why many California homeowners are sitting on gold mines.
This equity
can be used for valuable things such as home equity loans and home equity lines
of credit. These are low interest loans with the home used as collateral.
Equity opens up many valuable new doors and is just one reason why owning a
home is one of the best things you can ever do.
Another
advantage is the tax savings. Every dollar of interest paid in the mortgage
payments can be used as a tax write-off. This can be a very considerable
amount, especially early on in the loan when the interest is front-loaded, and
it can save you a lot of money in taxes.
Of course,
it really comes down to the simple fact that you own a home. That home is yours
and that with that comes a certain pride. Owning a home is one of the most
important things you will ever do. Don't pass it up, don't choose to rent if
you don't have to. There are just too many advantages of owning a home to pass
up.
