Many financial and personal reasons prove why you should own your own home rather than renting out. Home ownership is something that most of us dream about. Purchasing a home may be one of the most significant things in most people’s lives. Even though it seems easy, buying a home may be one of the biggest financial decisions you will ever make. Finances and lifestyles and affected by this decision.
When your House is your Own
Homes can give you a sense of ownership, equity, and open many gateways for you. People yearn to own their own homes where they can create comfort and a sense of belonging. With your house, there is no landlord involved and you don’t have to pay monthly rent. When you own a home you will find yourself in control of your immediate environment. You are free to paint, decorate and arrange it however you like. You can decorate permanently without worrying about paying for any damages to the property. The best way to provide your family a sense of stability and security is by owning your own home.
One of the Best Investments
A home investment is one of the best purchases to make because houses tend to appreciate in value over time. Sometimes the real estate moves in unpredictable cycles, but most times they constantly increase in value. Homeowners purchase multiple houses as a future investment. They buy houses and rent them out until the prices of the houses increase. When this happens, they sell them to buyers at a profit. If you are smart, you can purchase a chain of homes as a form of future investment.
Creating Ground Roots
There is a great sense of belonging that comes with owning your own house. You found yourself more involved with the community and surroundings. If you are a family, you won’t have to worry about moving and changing schools. You gain an attachment to your environment and the people around you.
When you own a home, you pay fewer taxes and save more money. When you continue paying your mortgage, your debt amount goes down. Fewer debts mean fewer commitments. This way, you monthly salary continues to increase and you are able to add more to your savings account.
Clearing your debt is good for your credit. You get more points on your credit; this increases your chances of getting a higher home loan and mortgage. You can use this opportunity to ask for a bigger loan and invest in more houses or businesses. For home investors, if you receive more profit in a sale of a home, it will be considered a capital asset. The capital asset receive preferential tax treatment meaning the taxable potion is very little and you are left with more to save or work with
You receive mortgage interest deductions. Tax rates in the UK favour homeowners. During the first few months of paying your mortgage, most of the payment is directed into paying the mortgage interest. This way, you reduce the interest from your taxes and subsequently the amount you pay in house-related taxes each year.