In today’s market, there are many people who delay owning a home in favor of renting. However, there are many little known benefits of owning your own home. It might be in your best interest to consider if owning a home is right for you.
The Hidden Benefits of Owning Your Own Home: Avoid Rent Price Increases
When you rent a home, you have to deal with increases in rent. Your landlord has many expenses to worry about including property taxes, repairs, and other payments. It is often necessary for them to increase rent in order to cover all these payments. Typically, rent is increased once your lease is up and you renew. Average rent increases are between a 3% and a 5% increase. Over time, this can be quite substantial and it may not be feasible to renew your lease and stay in the same location. If you own a home, you don’t need to worry about rent increases. You can rely on a fixed monthly expense for your home. It is predictable and unchanging.
In addition to avoiding extra expenses, you can also save money when owning a home. This is done through a variety of tax deductions and savings. Throughout the year, you will pay your mortgage and property tax and when it comes time to file your taxes, you receive deductions for these payments. Since owning a home is so expensive, these tax deductions are offered as an incentive for people to purchase a home. You can also receive tax credits for certain actions. For example, you can receive a federal, and even a state, tax credit for adding solar panels to your home. Solar tax credits return 26% of the cost of your system.
The Hidden Benefits of Owning Your Own Home: Investment Over Expenditure
One of the main benefits of owning a home is it becomes an investment rather than an expenditure. You are putting money into something that is yours and that you can make changes to. These changes can benefit you later. With your own home, you can make improvements that suit you better and make your home more enjoyable to live in. If you eventually choose to sell, many home improvements can actually increase the value of your home and give you a better return.
There are many pros and cons to owning a home. Many people may not realize some of the lesser-known benefits of purchasing a home over renting. These hidden benefits may be the deciding factor for whether purchasing a home is the right option for you.
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Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.