As a young single person or newlywed, you probably look at the expense of buying and maintaining a home and feel a little apprehension. Houses can often cost more than apartments, and houses also come with less flexibility than apartments. After all, when you have an apartment, you can move on to an exciting new locale with new neighbors when the lease ends.
Yet, your parents and the other adults in your life swear by home ownership. They tell you about the freedoms you’ll have when you have a property you actually own. But is it really advantageous to own a home?
Below, you will find a list of some of the most prominent benefits you will reap after you buy a house.
1. You Get a Tax Deduction From Your Home
When you own a home, you don’t have to pay as much in taxes as you did before. Tax deductions lower the adjusted gross income on your tax forms every year, which means you have a lower tax liability as well. These deductions come from everything you pay on mortgage interest, real estate taxes, and any points you pay to a lender when you create a new loan or refinance.
In addition to tax deductions, you can also get tax credits on your home if you improve it to make it more environmentally friendly, such as adding certain kinds of solar panels.
2. Houses Appreciate in Value
If you have ever watched your parents or family friends sell a home, then you probably noticed that the home sold for more money than they bought it for. Houses appreciate over time, which means they increase in value through the years. While your car decreases in value the moment it leaves the dealership, your home does the opposite when you buy it.
3. You Do Not Need Anyone’s Permission to Make Changes
Maybe you would like to paint a wall in your living room a deep, warm red to give the place some character. Or perhaps you want to replace the kitchen counters or the bathroom tile. When you rent, you have to ask your landlord if you can make these improvements, and he or she may refuse.
On the other hand, when you own a home, you get to decide what to do with it. So, if you want to significantly remodel, change the carpet, or add a greenhouse to the property, you can do so. A home you own is a canvas for your personality, while a place you rent is more of a spot to store your belongings.
4. Pets and Parties Are Not Off-Limits
Again, your landlord would normally stipulate that you cannot have a pet or a party in your rental. You would have to keep the noise to a minimum, and you would have to rent a pet kennel elsewhere to keep your cat or dog. The animal could never come into the apartment just in case future tenants have an allergy or a sensitivity to smells.
But again, when you own your own home, you get to decide what you do with it. You still have to respect your neighbors, but you can be much louder than you ever were in a rental, and you can have as many pets as you please.
Homes also come with increased privacy, predictable and stable living costs, and a sense of pride because you’ll live somewhere you own.
However, when you make a significant investment like a house, you need to protect it. Make sure you have home insurance so that if anything happens to your house, you don’t suffer financially as a result. Turn to a home insurance specialist to get the coverage you need, and don’t be afraid to ask questions.
