The Benefits of Home Ownership
- Good investment
Home ownership is a highly leveraged investment that can yield substantial profit on a nominal front-end investment. A house offers leverage, and the possibility for appreciation in value. And, a home is an investment you can live in, even while it’s working for you!
- Tax benefits, such as mortgage interest deductions
Mortgage interest deductions for first and second homes can be substantial. And your property taxes may be deductible as well. When evaluating the price of a home, it is important to consider the tax savings also. When doing so, consult a tax or financial advisor for information specific to your situation.
- Accumulation of equity
Why keep throwing your money away on rent? Why not build equity with that money, instead? Renting doesn’t protect you against rising housing prices. Rental units are just as susceptible as homes to increases in taxes, insurance, utilities and other costs. Landlords will pass these increases along to tenants.
- Control of housing costs
You decide what to spend on your home, and when to spend it. Repairs, improvements, changes-everything is up to you, and only you. Unlike renters, homeowners who secure a fixed-rate loan can lock in their monthly housing costs, and make prudent investment plans knowing these expenses will not increase substantially.
- Opportunity to make improvements on the property
No more futile daydreaming about that sundeck, or new bathroom, or exterior paint job. You can make any improvement on your own property that you wish, and you will be increasing your home’s value in the meantime!
- Pride of ownership
There is nothing like owning your own home and the benefits that go with home ownership. With interest rates at an all-time low, now is a great time to be looking for your new “magnificent manor.”