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.
There is no denying that the quality of nearby schools can impact the price of a home. But while this fact has always been somewhat of a given in the real estate industry, recent statistics now demonstrate just how much of an impact school quality has on real estate. Moving for schools is a common practice for house hunters throughout the world, sometimes even for home buyers without kids. Many home buyers are willing to pay more for good schools and are even willing to trade bigger and better homes for access to quality school systems. Twenty-nine percent of the buyers listed schools quality as a deciding factor in their decision. The influence of school quality on house prices also feeds back into school admissions. Faced with strong evidence on house price effects and in an effort to give poorer children the opportunity to enroll in high performing schools, recent policy has tried to loosen the link between where children live and the schools they attend. The link between schools and house prices also sheds light on the general shortage of what parents perceive as high quality schools, influencing the policy measures to extend competition, choice and the quality and diversity in provision through the academy and “free school” programmed.
Spending on housing is spending on a bundle of goods: structural quality, access to transport, green space, shops, safety from crime, views, environment and so on, alongside school quality. The market price of a house therefore reflects the availability of these attributes and amenities, and buyers’ willingness to give up other forms of consumption to pay for them. Some buyers will actually come to these areas with the specific intention to buy a home there specifically for the excellent school systems. However, there are other kinds of buyers out there that consider schools as part of an overall equation in determining the desirability of a property. Real estate investors buy homes for very different reasons than the average nuclear family – yet they are coming to a similar conclusion on the desirability of homes located near good schools. This is a perfect example of how schools can impact buying decisions.
When discussing why good schools do what they do to property values, it is easy to get into a “chicken and egg” dilemma. On the one hand, it is possible to argue that good schools are responsible for increased property values. After all, we just discussed multiple reasons why buyers will seek out homes located in good school districts and pay a premium for them. The conclusion that good schools drive up prices is an obvious one. The basic procedure is to take the price of a house and its associated local school quality, and compare them with the prices of similar neighboring houses that offer access to a different set of schools. The assumption here is that the close neighbors provide a set of almost identical “twins” with which comparisons can be made.