For a first-time home buyer, you might have been encouraged by your friends and family to go on with the purchase. As much as buying a home is exciting, there will be challenges along the way which could discourage someone from making the ultimate decision. Understanding the reasons to buy a home is important.
Having reservations is normal and is part of being human. Your mind is filled with questions like how much does it cost to buy a house ? If you’re fully prepared, buying a home can be one of the best decisions you ever make. There are people who would agree and there are several reasons why you should be planning to buy your first home. We’re going to highlight some of them.
Best Reasons to Buy A Home
Appreciation of the Home
There are not a lot of investments that appreciate in value without you actually doing anything. It is crucial to understand that real estate moves in cycles. Sometimes it will be up and sometimes it will be down. Looking at the stats in the last 50 years, there has been a consistent upward trend in the value of real estate. It is perhaps the safest form of investment you can put your money in, given the volatility of the currency market and the uncertainties that come with stock investment. According to statistics, home prices have risen by up to 6% every year for the last 20 years. The trend is not likely to change because of the increasing need for housing.
Pride of Ownership
There is some type of pride that comes with home ownership. Buying a home might be the biggest purchase you ever make in your life and it is definitely something to be proud of. You might have been saving for years for that moment and it is truly worth celebrating. With home ownership, there is a sense of stability and security for the whole family. You don’t have to worry about being kicked out because you can’t pay rent. It can also be seen as an investment for the future.
Tax Incentives for Buying a Home
There are some tax incentives that can only be enjoyed by property owners. As expected, real estate appreciates every year. That means the value will increase which could potentially be an issue with the taxes. The government doesn’t tax you on the capital gain. You will only be taxed when you decide to sell the property. There are also numerous tax incentives that are geared toward first-time home buyers. You just have to be savvy enough when you’re buying the home. It could be helpful to consult with an accountant so that you’re not paying more than you need to do for the home purchase.
It is possible to reduce the interest rate on the mortgage from the taxable income. A new homeowner is likely to benefit the most. You could potentially save hundreds of dollars because of this tax incentive. Since the real estate taxes are deductible, they can provide great benefits for a homeowner.
Not everyone is disciplined when it comes to savings. When you buy a home, there will be no other option but to pay the monthly contributions. You will also be forced to pay for the down payment. Every month, there is a portion of your earnings that will go towards offsetting loans. You shouldn’t see this as a cost but rather as building equity by paying yourself. Once the loan is cleared, you will have some money to work with, which can still be invested in real estate.
No Restrictions on Home Improvements
There are some restrictions that come with renting a house. Your landlord could restrict you from having pets. You’re not able to change the colors of the paint or embark on a home improvement project. When you buy your home, you can do as you please because you will not have to answer to anyone. You can decide to make some aesthetic improvements at your own pace, without having to worry about what the landlord will say.
You Can Sell
A home can be considered to be an asset. It can be used as collateral when taking out a loan. You could also sell it to raise funds in case of a serious emergency.
To sum it up, buying a home is not always going to be straightforward. Before you can start shopping, make sure that your finances are in order. You don’t want to start looking for a house, only to later realize that you can’t afford it. Working with a real estate agent can also help in finding your dream home. Click to find out more. Don’t settle on the first home you come across, as there could be a better one.