Although some people find renting a more
convenient option, real estate experts still recommend home ownership
because of its many advantages. Consider the benefits and risks of
home buying vis-à-vis renting. Especially when you think about your
retirement years, you will realize that investing in a home will be the
smartest decision you will ever make in your life.
Several studies
show that having your own home can indeed be beneficial in various ways
such as lower chances of teenage pregnancy, better education for your
children, and more annual income for your children. But these are just
some of the advantages of owning a home. Here are more reasons why you
should buy yours now:
1. Housing expenses are more stable with mortgage payments than rental payments.
When you buy a house, your mortgage payments are most likely to remain as they are throughout the home loan period. In contrast, rental fees usually increase each year. Especially during inflation, when prices of goods go up, people who rent are bound to lose more money than homeowners.
2. You get large tax savings.
Since mortgage payments consist mostly of property taxes and interests in the first few years, you can expect huge savings when you deduct these fees from your state income and federal income taxes-that is, if you decide to purchase your own home.
3. Home ownership allows you to consolidate your other debts.
You can do so if you need to refinance your mortgage loan and get out of debt faster. The interest on your debt consolidation can be deducted from your tax as well. You won't get this benefit from renting an apartment, house, or condo.
4. You can build equity in your own home.
When you rent, the money you pay monthly goes only to your landlord. But when you buy a home, your mortgage payments become your real estate investment. How does it happen? Generally, the value of properties increases over time. And when your property gets more value, you can earn money by selling it. Paying your mortgage loans is like investing your money for future use such as for your retirement fund or for the education of your children.
5. The house is yours!
Because you own the house, you have full control over everything that concerns it: the interior design, color of the walls, the number of guests you can accommodate, among many others. You can have as many pets as you want. You won't need to ask permission from the landlord about changing the look or remodeling the house. No one will force you out of your house or engage you in a violent altercation if you simply want to change the kitchen wall's color from white to neon green.
Remember, a home is the single biggest purchase that you might make in your life. Before you get a home, you have to know the responsibilities that go with it. The common risks involved in buying a real estate property include decreased value of the home, foreclosure, and increased expenses. Thus, weigh all the benefits and risks to be able to arrive at a wise decision.
1. Housing expenses are more stable with mortgage payments than rental payments.
When you buy a house, your mortgage payments are most likely to remain as they are throughout the home loan period. In contrast, rental fees usually increase each year. Especially during inflation, when prices of goods go up, people who rent are bound to lose more money than homeowners.
2. You get large tax savings.
Since mortgage payments consist mostly of property taxes and interests in the first few years, you can expect huge savings when you deduct these fees from your state income and federal income taxes-that is, if you decide to purchase your own home.
3. Home ownership allows you to consolidate your other debts.
You can do so if you need to refinance your mortgage loan and get out of debt faster. The interest on your debt consolidation can be deducted from your tax as well. You won't get this benefit from renting an apartment, house, or condo.
4. You can build equity in your own home.
When you rent, the money you pay monthly goes only to your landlord. But when you buy a home, your mortgage payments become your real estate investment. How does it happen? Generally, the value of properties increases over time. And when your property gets more value, you can earn money by selling it. Paying your mortgage loans is like investing your money for future use such as for your retirement fund or for the education of your children.
5. The house is yours!
Because you own the house, you have full control over everything that concerns it: the interior design, color of the walls, the number of guests you can accommodate, among many others. You can have as many pets as you want. You won't need to ask permission from the landlord about changing the look or remodeling the house. No one will force you out of your house or engage you in a violent altercation if you simply want to change the kitchen wall's color from white to neon green.
Remember, a home is the single biggest purchase that you might make in your life. Before you get a home, you have to know the responsibilities that go with it. The common risks involved in buying a real estate property include decreased value of the home, foreclosure, and increased expenses. Thus, weigh all the benefits and risks to be able to arrive at a wise decision.
Author Peter Jordan is a realtor with Prudential NJ Properties in Westfield New Jersey. For more information, visit http://www.livinginwestfieldnj.com
To invest in Tanzania real estate you can contact Hot EMI Properties in Dar es Salaam.
To invest in Tanzania real estate you can contact Hot EMI Properties in Dar es Salaam.
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