Many obvious benefits to homeownership exist, including the fact that you have a place to rest your heads at night and a solid roof over your head. However, there are many other benefits to owning a home that are less obvious, and that may surprise you. Some of these include easier access to credit, numerous tax breaks (having $250,000 in your pocket tax-free), and better mental and physical health. Take a look at these benefits for yourself when considering whether to rent or buy your next home.
Easier Access to Credit
Homeowners who have built equity have access to lower interest loans backed by their equity. They can use this equity to get a loan or line of credit to finance home improvements and consolidate high-interest debt. A home equity line of credit (HELOC) enables you to get loans that have variable interest rates, as well. HELOCs can give you the capital to cover the costs of renovations like installing solar panels.
Owning a home qualifies you to get certain tax breaks. Mortgage interest in and of itself is generally tax deductible, as are certain costs associated with closing the sale of your new home. Other tax breaks that might apply to you include mortgage insurance and property tax deductions (though you should check with a real estate professional about your individual situation). These are all federal tax deductions, but many states in the United States allow similar deductions, as well. The most notable tax benefit to owning a home is that when the time comes to sell, you can take a profit of up to profit of up to $250,000, all tax-free.
Better Mental and Physical Health
One advantage you may not have thought of when considering buying a home is your overall health. The National Association of Realtors has found reports that show those who owned a home experienced better mental and physical health than those who did not. Some studies have shown that children of homeowners experience better health and greater happiness than children of those who are not homeowners. To explain how this benefit is possible, studies have pointed to what is called the “wealth-building effect” of homeownership and the sense of control and stability it brings to those who own their homes.
These hidden advantages to home ownership are not well-known by home renters. Take control of your credit, your wallet, and your health and consider buying your next home to benefit from all of the advantages that owning a home has to offer. You won’t regret the improvement that it brings to your quality of life.
If you’re ready to make the step in your life of buying a home, let’s talk! Contact us so we can help you find your dream home.