When your landlord tried to jack up your rent between leases, you started to fantasize about owning your own home. You’d had it with yearly leases, temporary living situations and questionable maintenance—instead of paying some stranger hundreds or thousands of dollars per month to live and having little to show for it, you’re ready for the investment of a lifetime.
Here are the top four benefits of owning a home (besides the pride you’ll feel every time you pull into the driveway and gaze upon your abode). Just don’t forget to protect your new digs with the best homeowners insurance for your needs, courtesy of CoverHound!
Steady Monthly Payments
Remember when your old neighborhood suddenly got “cool” and your rent jumped in response? Remember how, despite having the same income throughout, your rent payments varied wildly year to year because you moved or got roommates? It’s only in retrospect that you realize how stressful unpredictable expenditures, like rent, can be. It’s difficult to budget when your expenses are always fluctuating.
As Realtor points out, homeownership allows you to “lock in a predictable mortgage payment for as long as 30 years.” Both your principal and interest payments will remain relatively steady over time; you won’t face any scary surprises when it comes to your housing finances.
Builds Equity and Wealth
Paying rent is extra frustrating because the profit goes to the landlord or management company. Sure, you have a roof over your head, but you leave your lease empty-handed. Making mortgage payments on a home, however, builds equity (how much you can sell your home for minus how much you owe on it) and grows your wealth over time.
Possible Tax Benefits
Owning a home comes with property taxes, of course. But homeowners may be surprised to find they qualify for any number of tax benefits! USA Today outlines a few popular tax breaks that homeowners may enjoy:
− Mortgage interest deduction: Write off interest on a loan up to $500,000 (single filer) or $1 million (joint filer).
− Property tax deduction: Claim a property tax deduction (more taxes equals a bigger deduction) during the calendar year that you make your payments.
− Private Mortgage Insurance (PMI) deduction: Earn tax breaks if you have a PMI and an income below $54,000 (single filers) or $109,000 (joint filers).
− Home office deduction: Write off a portion of home expenses if you have a dedicated space for working from home.
Freedom to Renovate
Last but not least: You can renovate to your heart’s desire! If you want to hammer nails into the wall, feel free. Want to paint every room in your house bright yellow? That’s your call. Want to add a pool, deck, garage or finished basement? Be our guest. Just make sure that it doesn’t violate any neighborhood rules or Homeowners Association (HOA) standards, or you could face a fine (and some grumpy neighbors).
Buying a home is often the biggest financial investment you’ll ever make. Protect it with the best homeowners insurance for your living situation. Learn more with CoverHound.