If you’re at a point in your life where you’re looking at reassessing your living arrangements, it’s important to consider whether it would be best for you to carry on renting or whether it’s time to become a homeowner for the first time. So what’s the right answer?
In order to get a better idea of whether you should buy a home of your own, we’re going to take a closer look at the key benefits that come with home ownership in 2021. So read on and allow the information below guide you as you take your next steps in life with regards to your living arrangements.
When you own your own home, you get to benefit from the capital appreciation of the property. When it increases in value, you have a more valuable asset on your hands. And when the time then comes to sell it, you benefit financially. And rather than with other assets, you don’t have to pay capital gains tax on the appreciation of that asset as it’s exempt from such taxes. Of course, there’s no guarantee your property will rise in price but it’s certainly likely.
When you pay your home’s mortgage each month, you’re building up equity in your home. That value belongs to you and that’s obviously not something that can happen when you’re paying rent to your landlord each month. When you have equity in your home, it also allows you to benefit from options such as equity loans in the future if you ever need to. It’s good to have those kinds of options open to you in the future.
Control Over Important Decisions
Having control over any important decisions that need to be made with regards to the property is a great benefit of home ownership over renting. When you control those important decisions, you never have to feel beholden to other people. You can decide when you want to change the flooring, paint the walls or renovate the bathroom. It’s nice to be able to do that stuff without asking someone else first.
When you buy a property, you have the flexibility to use it, change it, sell it or rent it out whenever you want to. Having the flexibility that comes with home ownership is one of the things that makes it so appealing to so many people. It could be the decision that ultimately makes you decide that home ownership is the right path for you.
When you live in a house for rent, you have a tenancy agreement that you have to stick to. That’s something that can be massively beneficial to some people but it can mean a lacking consistency for some if they have to remove out of that property when the tenancy agreement comes to an end. When you own your own property, you get to decide when you move on or how long you stay there and no one else makes that decision for you. It all depends on what your priorities are; renting will work best for some.
The Pride of Ownership
There’s also a certain level of pride that comes with home ownership and that’s something that should never be overlooked. It’s something that people tend to realize and become more heavily invested in once they eventually do own a home of their own for the very first time. This has a lot to do with being able to modify and decorate the home in a way that’s specific to you and your preferences. It gives you a sense of ownership that’s often missing for renters.
The Tax Benefits
There’s also a range of tax benefits that come with owning your own home. This is something that varies from location to location and if you want to make sure that these benefits will exist for you, it’s important to research the tax situation in your particular locale. But it certainly is the case that many homeowners benefit from a tax point of view. Tax considerations should be weighed up when considering whether renting or buying is the most financially prudent path for you to take.
As you can see, the benefits of home ownership remain massive, and that’s not something that looks set to change anytime soon. No matter what your financial situation is, you should be working towards making home ownership a reality for yourself and your family.