Benefits of Buying a House

By: Dianna Howell
Posted In: Buying

(Here are 10!)

Being a homeowner is something many of us dream about. Whether you’re wanting to own your own home for privacy, a place to raise your family, or even just as an accomplishment, we have 10 benefits of buying a house!

Watch this video that covers the 10 benefits of being a homeowner: https://www.youtube.com/watch?v=X4wuMyTCqrA

1. Pay Yourself as a Landlord

Think of rent money versus mortgage mone. You’re paying yourself as a landlord instead of paying someone else. The money goes towards your mortgage. You are investing in your property when you pay a mortgage. You’ve heard people say before that by renting you’re essentially, washing money down the drain, and they aren’t wrong!

Do the math on an estimate of $1,000 of rent for 10 years and that’s $120,000! Remember too that rent usually increases after a year, so add up your rent per year and how long you think you’ll be renting. You may be surprised at the overall cost. See if it makes sense for you to put that money towards owning a home instead of renting.

2. Decrease the Amount You Owe for a Home

As you pay your mortgage every month, you are decreasing the amount you owe on your home and increasing your equity. Owning a home is an investment, but while renting you will spend money on repairs too so money is still coming out of your pocket.

A common objection is that it costs more when you own a home because you will have to take care of the repairs. However, whether or not you own a home, repairs will still need to be done. Even when you rent, some of these charges may come out of your pocket.

3. Gain Equity

When you pay off a mortgage, some of the money goes to interest and some goes to principal. The amount going towards principal which is going towards paying off your loan amount.

As your mortgage decreases, your equity (what you own in your home) increases. It’s like paying off a credit card, but once it’s paid off, you own your home fully instead of having a $0 balance!

4. Tax Benefits

You receive tax benefits for owning a home and who doesn’t love to save money when tax season comes? Owning a home allows you to receive benefits off of your taxes, especially first time homeowners.

5. Stabilize Housing Costs

When you buy a house, essentially you are stabilizing your housing costs, unlike with renting where your rent may increase every year. Not only does your rent amount usually increases after a year, but other costs could arise. This may cause you to move and then find another rental. Which not only disrupts your life, but causes you to put down payments and switch utilities and also change your address on all of your accounts!

When you own a home you have a mortgage, and you know exactly what you need to pay each month over how many years to pay it off.

6. Personalize Your Home

One of the perks of owning your home is you can express yourself with your design! Yes, there are some HOA codes to stick to when it comes to the front yard and front of house, but inside, you can have whatever color walls you want! As far as landscaping, check with HOA and for fences too. These are good things to find out before you put an offer on a house.

Gain control over your living space and the outside of your home. You can decide on things like fences, pets, landscaping, and the colors of the walls. Rental properties often have to be restored back to its original condition when you leave.

And if you have furry pets, you no longer have to pay extra for them to live with you! Owning a home gives you freedom that allows you to be creative and express your personality.

7. Sustainability

Most jobs tend to give raises the longer a person stays there. Since you know your mortgage payment amount (see point #5), you can put the extra money someplace else! You can use it to pay off debt, save for a vacation, put towards your children’s education, or buy something else that’s costly!

Increase your sustainability as you earn raises as the money can go towards your future instead of rent.

8. Stay in One Place

When you own a home, you don’t have to worry about an increase in rent that may no longer fit in your budget and cause you to move (see point #5). You can unpack and make this new house home! Of course, family issues or relocation of a job may cause you to move, but owning a home is more stable than renting.

9. Community Benefits

There are so many social benefits like being invested in your neighbors, community and kids, when buy a house!

When you own your home and your neighbors own their homes, it’s more likely that you will get to know everyone. In rentals, people come and go. If you have kids, this will help you and your family get invested in the community and make your neighborhood feel like more of a home outside of your house.

10. Investment Opportunities

As a homeowner, you can even use your investment to invest! Maybe buy another property or put money towards your children’s education.

There are so many things you can do once you start saving money (see point #7)! Sure, you can save, buy a new car, or pay off a debt, but you can also invest! Perhaps you’re saving for private school or college funds for your children.

Or, you may want to look into buying an investment property. The options are endless and up to whatever fits your lifestyle best.

Ready to be a Homeowner?

If you want more information about homeownership we would love to help! If you’re in the Greater Birmingham, Alabama area and want to know how to start the process of buying your first home, Please contact Dianna Howell with The Howell Group at 205-568-5435 or dianna.howell@kw.com