For years, buying a home has been a measure of financial success. Purchasing a home is one of the biggest financial decisions one makes during their life. This is primarily because an own house is usually the most expensive single purchase an individual or family can make, and often costs several times the annual household income. Given the high cost, most individuals do not have enough savings in hand to pay the entire amount outright. In developed countries, mortgage loans are available from financial institutions in return for interest. If the home owner fails to meet the agreed repayment schedule, a foreclosure, also known as a repossession in some countries, may result.
However, given all those terms, owning a home means having a space that is truly yours. It’s a significant moment of your life when you finally move into your own home. But owning one can be intimidating because of the responsibilities and obligations that come with it, combined with the initial process it takes to get there. This also means commitment and integrity for a longer period of life.
Becoming a homeowner comes with a lot of responsibility, and here are the top reasons why home ownership is the best decision that you can make.
- Homeownership is an investment: Unlike any other movable assets and many other purchases that decrease in value, a home is a purchase that appreciates over time. This creates the buying and reinvestment power better known as equity.
- Homes typically increase in value, build equity and provide a nest egg for the future. It is so great an investment that it is always going to be a source of equity to borrow money to suit your changing financial needs such as infrastructural development, education of even medical expenses.
- Your costs are predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage.
- The interest and property tax portion of your mortgage payment is a tax deduction. Owning a home can reduce the amount you pay in income taxes each year. Your mortgage interest and property tax payments may be deductible from your federal taxes, as well as many state taxes.
- These tax deductions are highly significant in the early years of your loan repayment tenure when it is the interest that represents the bulk of your monthly installment repayment schedule.
- When you buy a home and consistently make your monthly loan payments on time, you Build a Strong Credit History. Building a strong credit history in turn help you maintain a strong CIBIL score and this can help you become eligible for other loans in the future.
- While home prices move in cycles over the short-term, if you stay in your home for a long time, it could increase in value and give you a substantial return on your investment.
So don’t wait any more. If homeownership has been on your mind, then go for it. But make an informed decision after consulting the right real estate expert.