Being a first-time home buyer can be stressful and a bit scary. You will go back and forth debating on whether or not owning a home is for you, and you may have reservations (which is totally normal!). But one way to ease all this stress and make this process a little easier on you is to look at the pros of buying a home.
First and foremost, buying and owning your own home will give you a great sense of pride. Pride of ownership is a huge reason why people yearn to own their home. You can make a house a home by personalizing it and decorating it to your own taste. The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.
Home ownership gives you and your family a sense of stability and security. Remaining in one neighborhood for several years will allow you and your family to develop long-lasting relationships within your community.
Another reason to own a home is real estate appreciation (the increase in a home’s value over time). Real estate constantly moves in cycles, sometimes up, and sometimes down. Yet over the years real estate has consistently appreciated. More good news, the number of U.S. households is expected to rise 10 to 15 percent over the next decade which will create continued high demand for housing.
An additional pro for owning a home is the tax benefits. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home. Also, real estate property taxes paid for a first home and a vacation home are deductible for income tax purposes.
Another reason is related to equity and equity loans. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home. As for home equity loans, consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18 percent to 22 percent. Equity loan interest is often much less and it is deductible. For many homeowners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home's equity for a variety of reasons such as home improvement, college, medical or starting a new business.