Although, many consider, buying, and/ or, owning a home, of one’s own, it’s important to understand, recognize, and realize, some of the key reasons, this process, if far more than merely, finding the best place to live! While many benefit, in numerous ways, from owning, the wise individual, learns and discovers, some of the beneficial reasons, before making such an important decision. Doesn’t this make sense, since, for most, the value of their house, often, represents their single – biggest, financial asset? With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 reasons, home buying, makes sense, in many ways, to most people.
1. Asset Value increase: When one rents, instead of owns, his monthly payments/ installments, go to his landlord, and he merely, benefits, from having a place, to hang – his – hat, but no ownership benefit! On the other hand, owning creates putting these payments, towards a real asset, and, thus, building – up, a degree of benefit, financially! Historically, over – time, real estate adjusts upward, with the so – called, cost – of – living/ inflation, and, thus, the simple way of looking at this, is, considering, would you rather pay your landlord, or yourself? Many believe this personal investment, is one of the best ways, to preserve asset value, etc.
2. Real estate tax deduction: Although the real estate tax deduction, in some instances, is not as beneficial, as it once was, due to the 2017 tax legislation, which capped, state and local tax deductibility, at a maximum of $10, 000, for many, this is still, an advantage (even, if a more, limited – one, than it used to be).
3. Mortgage interest deduction: Interest paid on a mortgage for your primary home, is deductible, as long as the mortgage, in most cases, is, no more than $750,000. Obviously, for those, who itemize deductions, this may be a significant benefit.
4. Pride of home ownership: Owning a home, of one’s own, often, creates a positive, emotional attachment, we refer to, as the pride of ownership! In addition, when it’s your house, you can customize it (or not), as your finances, resources, needs, and priorities, dictate, as opposed, to the limits, when you are a tenant, instead!
5. The American Dream: Many, often, refer to, the so – called, American Dream, and, to many people, a major component of that, is home ownership! When living in something, that’s yours, makes you feel better, etc, isn’t that a clear – cut, benefit, for most?
In the United States, many people look forward to owning their home, instead of renting. Before you do, either, proceed, in a well – considered, way, and know, whether, this is a worthwhile goal, for you!