While there are undoubtedly a number of issues related to purchasing a home, there are also a number of benefits. While you will have to deal with the down payment and closing costs, property taxes and maintenance fees – in most cases the rewards of home ownership far exceed the problems. If you have begun searching for Homes For Sale in Stillwater MN and need an extra bit of encouragement to take that leap, use the benefits highlighted here.
Tax Deductions
While paying your property taxes and interest on your home are definitely not fun during the year, come tax time they can be your best friend. The payments you make in interest and property taxes will be deductible on both your state and federal income taxes. Additionally, in the first years after a home purchase, the majority of the money that you pay toward your mortgage is interest. Additionally, there are many other fees, such as closing costs and fees for the loan application that may also be deductible.
Appreciation
When you purchase a home, this is considered a steady and safe investment that will increase in value as the amount of debt decreases. Even during periods of sales declines, the median price of homes has increased each year since back in 1968. Usually, the home values will appreciate at the inflation rate, in addition to one or two more percentage points.
Equity
The percentage of the property that you actually own, or the equity, will also increase over time. If you are a renter, you will never build equity. When you own a home you will be able to build your equity that goes along with the home’s appreciation.
Ability to Borrow
When you decide to remain in your home, the equity that builds will come in extremely handy. This equity can be used to secure another loan or to obtain a new line of credit. Essentially this means more purchasing power that will allow you to fund your home improvements or to help you assist with buying an investment property. Additionally, having the cash for emergency situations is another huge advantage.
There are a number of benefits to homeownership, each offering you another reason why buying is better than renting. When you are considering purchasing a home, use the benefits here to see that this is the best option for you.
