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Homeownership comes with many benefits, both fiscally and in terms of lifestyle. If you’re struggling with the decision of whether to buy or rent, here are 8 good reasons to take the plunge and invest in your first home.
1. You build equity.
2. You can customize your space.
Owning your own home means you can renovate to your own tastes, knock down walls, install energy saving lighting options, and make any changes to your decor without fearing you’ll lose your security deposit. Being a homeowner gives you control over the space you live in, which means you’ll get more out of your home environment.
3. No more moving-day hassles.
Once you’re a homeowner, you can safely say goodbye to those frustrating days spent lugging your couch up a staircase or trying to book a moving van on July 1st. Renters tend to stock up on custom furniture that matches each place they occupy, and then have to deal with moving it around when they end their leases. When you buy a home and settle in for the long haul, you can buy a few pieces that will stick around, and rent your unit fully furnished if you ever decide to upgrade or downsize.
4. Owning a home is a forced savings plan.
When you’re a homeowner you’ll have to pay off your loan every month, so you’ll be routinely putting money away instead of wasting it on eating out or new outfits you don’t really need. When you sell your home after the mortgage is paid off, you’ll walk away with all the equity plus the appreciation value.
5. Homeownership allows you to build passive income.
Homeowners often find ways to monetize their homes, such as renting a spare bedroom or garage, putting it up on AirBnB over the holidays, or renting the entire unit when it’s not their primary residence.
6. Tax Benefits.
Homeowners can deduct the mortgage interest from their tax obligations, which can amount to a huge deduction since interest payments are generally the largest component of a mortgage payment…especially in the early years of homeownership. You can also deduct property taxes, so long as the home is your primary residence. Lastly, you can reap from the tax-free profits of your primary residence’s appreciation, thanks to capital gains exclusion.
7. No more dealing with landlords…ever again.
Landlords can suck. But when you’re a homeowner, you won’t ever have to wait a week for them to fix a broken dryer, and you won’t live at the whim of their arbitrary rent increases.
And last but not least,
When you own your home, you adopt a very different approach to the community and physical neighbourhood around you. Since homeowners think in the longterm, they tend to get more involved with local groups, efforts and events. They also tend to make more of an effort to build long-lasting friendships with their neighbours.