Owning a Home - Home ownership is the ultimate goal of many Americans. There are several advantages and responsibilities that come with home ownership.
The one big advantage is a home appreciates with value over time making it a good long term investment. You also will be able to deduct the interest paid on the mortgage and property taxes from your federal income tax.
Along with home-ownership come the responsibilities of repairing, maintaining, and proper upkeep of the home. You must take care of items that break or are in need of repair such as a furnace, plumbing leaks, central air unit, etc... There is also regular maintenance and upkeep of the inside and outside of the home that should be done. Some examples are maintaining the yard and landscaping on the outside of your home, painting, replacing or keeping the siding or exterior of your home nice, replacing the filter on your furnace, etc... So while homeownership can be a very rewarding achievement, their are also a few responsibilities to go along with it.
Make sure you have adequate insurance coverage. Discuss your policy in detail with your insurance agent. One specific coverage, which is very inexpensive, everyone should have is for water from a below-grade source. This covers damage in case of a sewer back-up which is usually NOT covered in the main policy.
It's a good idea to make friends with your neighbors and watch out for each other. If go on a vacation ask some of them to keep an eye on your home.
With homeownership comes responsibilities a renter never has. The most time consuming and costly responsibilities as a homeowner would have to be upkeeping the property, such as painting, paving the sidewalk, cleaning the gutter, roofing, leave raking in spring and fall, removing snow in the winter, etc.
Advantages of owning a home - There are many reasons for home ownership and everyone may have different ideas on why to own a home.
One reason or advantage of owning a home is the freedom of homeownership. Homeownership provides a certain freedom that you are not able to experience in an apartment, a college dorm, in your parents house, in a duplex, or even renting a home from a landlord. It is a wonderful feeling to know that the house you own is yours and you are actually investing in your future. With owning a home you have the freedom to decorate as you want, the freedom to add on however much you want, improve the home to your needs, and many other freedoms as well. Consult a mortgage professional to find out more information or to see how much you qualify for today!
A big advantage to becoming a home owner is the tax advantages. The interest paid on your mortgage can be written off at the end of the year. This is not the case with your rent payments. You should consult a certified public accountant (CPA) to see just how much of a tax advantage home ownership can be.
Only homeowners get to take direct advantage of real estate appreciation. Many people who stay in their home 10 or more years eventually find their property has appreciated into a small fortune. Some people choose to take cash out of their home equity to invest for an even greater return. Others eventually down-size in their later years and use proceeds from the sale of their home to supplement their retirement income.
Another advantage of owning a home is that your monthly housing payment will stay fairly constant, especially with a fixed rate mortgage. If you rent, however, your housing payment will most likely go up every one to two years.
While there are many practical benefits to home ownership, there are also many other benefits. You can paint your walls any color you want. You can landscape the house however you see fit. You won't have to deal with loud footsteps from the apartment above you. There are many, many things that you will be able to do that would not be allowed to in an apartment, which may be the most fulfilling part of owning a home.