Although moving from rental property occupancy to homeownership comes with its attached responsibilities, homeownership also offers an array of benefits and lifestyle rewards. To help you decide if homeownership is the right move for you, the following are many of the primary reasons volumes of people choose homeownership over renting.
Homeowner & Real Estate Investment
Many people prefer to invest in real estate largely because it gives investors more control over the process and outcome, provides mental security and stability, and real estate investment generally has low volatility, compared to the stock market. Real estate investment is also more beneficial in the end due to generally high returns. While home prices move in cycles over the short-term, if you stay in your home for enough time, it almost certainly will increase in value and give you a substantial return on your investment.
Being A Homeowner Helps Build Equity
When the monetary amount owed on a home loan is subtracted from the total value of a home, the amount left over is the home equity. Home equity is the value of a home that belongs to the homeowner. Home equity can be established in two distinct ways:
First, with each monthly mortgage payment made, a portion goes toward reducing the amount you owe on your loan, which increases your equity. In a sense, paying your mortgage is a form of savings, as it increases the equity in your home. Second, as your home increases in the value, it creates more equity.
So, when homeowners make a mortgage payment, it is a form of savings, since a portion of each payment increases the amount of built up home equity. Many homeowners build the equity in their home over time so that if necessary, that built up equity can be borrowed against in the form of a home equity loan, assisting homeowners in a variety of financial needs. Often, homeowners will use their home equity for home improvements, education or medical expenses
Homeowner = Tax Deductions
In addition to real estate being a solid investment that build equity, owning a home can also reduce the amount a homeowner pays in income taxes each year. Great news, right!? It’s true. Homeowner’s mortgage interest and property tax payments may be deductible from federal taxes, as well as many state taxes, depending on the homeowner’s state of residence. Incredibly, even certain closing costs and loan discount points may also be tax deductible.
Being a Homeowner Helps Build A Strong Credit History
When people move from renters to homeowners, building a great credit history is at your fingertips! There is just one rule: consistently make your monthly loan payments on time, every time. When homeowners do this, it proves to other lenders and financial institutions that you are a good borrower and the risk of you defaulting on a loan is low. This strong credit history will be helpful in the future when you need other loans for buying a car, making improvements to your home, or paying other major expenses. Honestly, there is no better way to gain great credit than always paying your mortgage payment on time and in full.
Being a Homeowner Means Creative Freedom
Welcome to homeownership! Here you will find a blank canvas that you can literally do whatever you want to it. The freedom of being a homeowner is unlimited! No longer will you seek approval from landlords for paint, home improvements, pets and so much more.
Become a Homeowner Today
Selecting a realtor is one of the most important choices you will ever have to make. Aliesha Noonan, Glen Lombardi & their team of personable and professional realtors realize that the average home buyer or home seller will purchase or sell real estate only a few times over the course of their lifetime. This is why, as a team, we ask ourselves why you would choose an average realtor to handle your most important financial decisions, when you can have an excellent realtor by your side?
Our team strives every day to be those excellent realtors you can trust to help you secure the best property for your specific needs and lifestyle. Our goal is that you will be as happy with our real estate services as we are to provide them.
If you’re ready to take the next step toward homeownership in Southern New England, we’re the real estate team of professionals for you. From the coast of Rhode Island to the woods of Western Massachusetts, we’re here to deliver on all your homeownership expectations and dreams. The Noonan Lombardi team of realtors specializes in listing homes for sale, helping clients purchase new homes, property management and rentals as well.
Contact Us Today:
Noonan Lombardi Realtors
696 Douglas Pike
Smithfield, RI 02917