Pros of Owning Build Wealth. Renting is not as financially forward-thinking as owning. With your home payment, you are getting something in return. As you pay down your mortgage and your home appreciates in value, your net worth increases, building a legacy you can pass on. Stable Costs. Whereas rents can increase every year, locking in your mortgage to a fixed payment keeps your housing cost stable — and probably lower — over time. Make the Home Your Own. As a homeowner, you are free to personalize your home to your heart’s content! Source of Cash. As your home appreciates, you can refinance your mortgage to pull out cash for improvements, renovations, vacations, college tuition, or passion purchases. Tax Advantages. Your mortgage interest and property taxes can be deducted in April to lower your tax burden. If you sell the house for a profit, the profit may be taxed at a lower rate or even completely exempt from taxation. Builds Credit. Paying your mortgage on time builds your credit score, enabling you to qualify for more loans at lower rates. Possible Investment. If you move, you could always rent out the home to a tenant instead of selling, creating cash flow. Things to Keep in Mind Responsible for Repairs and Improvements. While your house payment will be lower over time, make sure to budget for repairs and improvements and form good relationships with home service professionals and contractors. Less Flexible. It’s easy to leave an apartment. Selling a home is a much longer process. If you plan to move around a lot, it’s harder to build wealth with a home.
2024 Buyer Guide · 4
Powered by FlippingBook