5 Benefits of Homeownership
For a lot of people, buying a home is a step in living the American Dream. Florida residents have the benefit of being in one of the most diverse and robust real estate markets in the country.
Buying a home offers more than just another milestone in adult life, though. In fact, there are some major financial benefits to owning a home you should consider. If you’re on the fence about whether or not this is the right time to buy a home in Florida, then let’s go over five benefits that you’re going to enjoy as a homeowner.
5 Reasons to Own a House in Florida
There are some great homes on the market in Florida, and owning a home may allow you to reap some financial rewards. Sure, the process can seem a bit stressful, but there are quite a few reasons to put up with the pain of the buying process and get into property ownership. Plus, you have access to a great team in Florida to help make the home buying process easier. Before we get to that, let’s talk about 5 benefits of homeownership in Florida.
It’s a Great Way to Invest
Investing seems tricky to a lot of newcomers. The stock market is sort of like gambling, where you can put money into something with no real guarantee you’re going to actually gain anything. Well, buying a home is much more stable as an investment. When you pay your mortgage every month, you own a little more of that home yourself. After the mortgage is up, you own the property outright. You can then sell for a profit or you can simply pay property taxes and skip a monthly mortgage payment.
Things like equity also play a role in that investment, which we’ll get to below. But firstly, let’s talk about an immediate way you’ll be saving money.
Tax Deductions Make a Big Difference
It might seem silly, but spending money on a mortgage can actually save you money. How is this possible? Well, the U.S. Tax Code is written to benefit homeowners. When you pay for things like interest on your mortgage and property taxes, you can deduct those from your return. That may mean more money coming back to you come tax season. Plus, there are costs during the buying process that, if you go over the allowable exclusion for costs during the purchase, become capital assets and receive lower tax percentages. Taxes are just one area where you’re going to actually save money on your home. Of course, making money isn’t just getting a higher tax return. It also means gaining equity.
Gain Equity, the Secret Source of Wealth
Equity is the amount of money you own through paying down the principal part of your home loan. The longer you own the home, the more equity you have in it. That makes you a very reliable borrower to credit companies, increasing your credit score. It also means you are going to be able to reduce your obligation on the mortgage and slowly but surely own that property outright. Much better than renting, to be sure! With that equity, you can actually borrow home equity loans out against your owned portion of the mortgage, enjoying much better rates than a personal loan for things like college, starting a business, or medical expenses.
Monthly Payments Stay the Same, Mostly
If you opt for a fixed-rate loan, you will be paying a stable monthly mortgage payment each month. Things can alter this, such as changes to your mortgage and refinancing. Otherwise, it’s nice to know someone won’t randomly raise your rates like a landlord might if you rent. This can help you budget a little better and find ways to maximize your income to invest in other areas of life. There are a lot of tenants nowadays who find themselves strapped for cash each month only to have their rent rise when the lease is renewed. That’s a tough pill to swallow that you don’t have to fear when you own your home.
Your “Home” is Finally Your Home
Financially, you toss money out the window when you rent. Simply put, any money you put into your home is like forcing yourself to put cash into savings. You might not be able to pull it out as cash whenever you want, but equity and money down on your mortgage are actually more flexible in terms of loans than any other borrowing method.
Not to mention, owning your home provides a sense of pride. You can renovate if you want, paint to your heart’s content, and make improvements to make your life easier. You may have to now deal with things like repair costs and other expenses, but there is financial freedom and flexibility that comes from owning a home that you can’t get as a renter. For that reason, it’s a great way to make an investment into your life and feel like every monthly housing payment is going back into your future instead of someone else’s pocket.
Need help getting started in the homebuying process?
Questions about Home Ownership? Call Us!
If you’re in the process of looking for a home or beginning the homebuying process, then the team at the Associates Home Loan of Florida is here to help. The AHLF team is perfect for those looking to make the decision of a lifetime and buy a home in Florida.
The best thing you can do when pressed with the complications of a homeowner’s lien is to turn straight to the experts. For Florida homeowners, there is nobody more qualified or excited to help you through the homebuying process, lien or no lien. As experts on mortgage questions big and small, Associates Home Loan of Florida is waiting to help you over the phone or online. Ready to find out more? Visit our website, or call (813) 328-3632.