If you are currently renting and are unsure about whether or not to make the jump to homeownership, here is a list of benefits that you will receive as a homeowner that are not available to renters.
Monthly Payments Will Stop
If you have been renting for a long time, it may seem like a foreign concept, but when you own a home, you will get to the point where you own your home outright and you can use the money to fund more fun things instead of a monthly house payment.
Owning A Home is a Tax Break
This advantage is common knowledge, but it is definitely worth repeating. In an article by the National Association of Realtors, “Both the interest and property tax portion of your mortgage is a tax deduction. As long as the balance of your mortgage is less than the total price of your home, the interest is 100% deductible on your tax return.” This is a huge tax break for homeowners that renters cannot compete with.
With a mortgage, your monthly costs are more than likely on a fixed rate, meaning you can budget your finances accurately over a long period of time. As opposed to rent costs, which can be raised at the property manager’s discretion and/or when your current lease contract is up. Another benefit to owning a home is that some utilities offer level pay after living in a home for a few years. The utility company takes your average usage, which becomes your monthly payment. Since it is an average and is unlikely to change, it means you can budget even more accurately.
Homeowners also enjoy better health than renters. Owning a home offers a more stable living situation, more predictable costs, and a better socioeconomic standing, which leads to lower stress and better overall health.
Multiple studies have shown that homeownership has a positive impact on a child’s academic achievement. Some of these benefits include improved performance in reading and math for kids aged 3-12. Some of this is attributed to the above-mentioned health benefits. Healthier and more stable students perform better in school.
Did you know that your home can help you pay for other things? Using your home’s equity, you can use a home equity line of credit to pay off other things, such as student debt, college tuition, or even home improvement projects.
Speaking of home improvement, your options for personalization as a renter are your furniture and decorations. As a homeowner, you can truly make your home your own. You can upgrade appliances, add new floors, repaint the walls, or add a backyard deck. These upgrades help you like your home better, but they also can increase the value of your home, leading to increased equity, mental health, and satisfaction.