As we grow up, we hear all about the fact that we need to buy our own cars and own our own homes. We hear that we have to save up substantial deposits and we need to scrape together all of our fees, insurance and moving costs, too. If you’ve been weighing up whether you should go for it with your first home, the chances are that you’re going to be having some reservations and concerns as to whether you should go for it in the first place.
When you use calculators like the ones you find at https://mortgagequote.com/, you are going to be able to make the biggest decisions about your home purchase, and they’re going to be good decisions! You still might wonder if buying your own house is the correct thing to do, and while having reservations about it is totally normal, we’ve got eight great reasons you should just say yes and go for it! Let’s check them out together:
Why You Should Buy a House
- It feels good. There is something so wonderful about the feeling of knowing you own your own house. It’s a big deal to get to that point in life, and you can be proud of the house you have in your own way. You can decorate it and make it stand out, you can change it up and extend it according to your tastes. There are so many reasons to feel proud but it’s the sense of security that you’ve just given your whole family that really does make a difference here.
- You have an asset. As time goes on, your new home will start to appreciate. It means that your home becomes an asset that you’ve invested in. It’s not just a house to live in; it’s a tangible asset you’re going to be able to sell or benefit from one day. You can track how the value increases as time goes on.
- It’s a tax shelter. Did you know that being a homeowner is excellent for your taxes? You will find that most tax rates favor homeowners and mortgage interest is completely deductible on your tax return. Most of the time while you’re paying down your mortgage, you can bet that the interest will make up the most of your repayment. The fact that you can deduct this on your taxes is a huge benefit.
- You can stamp your personality on it. When you rent a home, you often cannot change anything – because it’s not your home. It’s going to feel like yours while you’re living in it, but you’re really just borrowing it, right? Well, you should think about how you can make your new house a complete home and then plan your finances accordingly.
- Capital gains exclusions exist! Once you’ve been living in your house for two years, you can exclude up to $250,000 for a single person in capital gains when you sell it, and up to $500,000 for a married couple. You don’t have to move up or buy a new house, but you can exclude this money every 2 years. That’s an insane profit every two years and it’s completely free from taxation.
- You can rent it out. Do you fancy your hand at being a landlord one day? You could buy your home and then – if you choose to move elsewhere, you could always become a landlord and rent out your home. Yes, it’s a lot of work, but the income that you could make renting out to someone else can be absolutely worth it!
- The chance to build equity. The longer you are in your home, the more equity you can build. The more equity you have, the more money you can get from your house if you need it and if you sell it. You have so much potential with a home that has equity in it.
- Equity loans are available. Speaking of equity in the house, if you have a need to borrow, you can borrow the collateral in your home. A home equity loan can help you to consolidate your debts elsewhere, including credit card debt and the likes. You need to decide whether you really want to borrow against your home, though, so get some advice first!
When it comes to it, owning a home is going to be a lot of responsibility. You need to ensure that you are ready for this before you buy for the very first time. It’s got a lot of benefits, and you want to be sure that you weigh up the good and bad.