What Are the Benefits/Perks of Owning Your Own Home?
Purchasing a home is a major investment and comes with substantial responsibility, and it’s not surprising that many prospective homebuyers ask “what are the advantages of owning a home?” The answer to that question is there are multiple benefits, and several of them are quite significant.
What Are the Advantages of Owning a Home?
The advantage of owning a home might be broadly categorized into personal benefits and financial benefits. Both categories deserve consideration.
Personal Benefits of Owning Your Home
The personal benefits of owning your home are slightly different for each new homeowner, but they generally include at least three main ones.
First, there’s a sense of pride that comes with home ownership. You no longer live in a dwelling that someone else owns, but a house that is yours. You’ve saved up enough to purchase it and have taken on the responsibility of caring for it, and that’s something worthy of celebrating.
Second, you can make a lot more modifications when you own a house than when you rent a dwelling. While you still need to adhere to local codes and neighborhood bylaws, you’re generally free to make any permitted changes that you like.
Third, you experience more stability when you own a home. When you rent, you’re at the mercy of your landlord to let you stay whenever the lease expires. With an owned house, no one will make you leave (as long as you pay the mortgage and property taxes).
Financial Benefits of Owning Your Home
The financial benefits of owning a home are also multifold. While exact benefits vary depending on the situation, they generally include the following.
First, most homes appreciate over time. Assuming your home goes up in value, you’re the one that benefits whenever you decide to sell.
Second, the monthly mortgage payments you make go toward both interest and equity. The equity portions build up over time until you own your house outright. Even before you own the house outright, the equity is money you can realize by selling the home if you need to.
Third, the appreciation you receive and equity you build up are free of any capital gains tax. As long as you make the home your primary residence, you won’t owe any capital gains tax no matter how much money it makes you.
Are There Disadvantages of Owning a Home?
There aren't any disadvantages to home ownership so much as there are responsibilities. When you own a house, you must:
- Pay the mortgage, taxes and insurance
- Perform basic home maintenance
- Make any necessary repairs
As long as you’re able to meet these responsibilities, the pros and cons of home ownership often strongly favor buying a house.
Consider the Pros and Cons of Home Ownership
For further help weighing the pros and cons of home ownership, contact a real estate agent in your area. They’ll help you consider all of the advantages and disadvantages, and they can show you houses that might be a good match for you.