The idea of saving up a substantial down payment in addition to closing costs, maintenance expenses, and other costs associated with home ownership can be understandably intimidating. For many, renting is an attractive alternative to owning a home; but knowing your hard-earned money is going into a property where you will never see a return on your investment is a dilemma all renters face. By assessing a few of the key benefits to buying versus renting, you can begin to see how home ownership can work in your favor over the long-term.
When you write that monthly check to your landlord, you’re ensuring you have a place to live for another month, but that’s where your benefits end. When you’re making a monthly mortgage payment, on the other hand, the amount applied to your loan principal is translated directly into equity, which is an asset in and of itself. Specifically, equity refers to the total amount of ownership you have in your home. If you bought your home for $200,000 but still have $150,000 left to pay on your mortgage, you have $50,000 in equity, which is $50,000 more than you’d have if you were paying the same monthly amount in rent. Not bad, right?
Enjoy Tax Benefits
There are also numerous tax benefits that you may be eligible for when you’re a homeowner. For example, any property tax payments you make on your home are 100% tax deductible. The same goes for your mortgage interest paid throughout the year. These deductions allow you to adjust your taxable income, which can drastically reduce the amount you owe come tax time.
Not to mention, there are even tax credits available to you when you make certain improvements to your home. For example, if you spend money on home improvements that increase the energy efficiency of your home, you could receive a credit of up to 10% of the cost.
Customize Your Space
Speaking of home improvements, when you own your home, you’re the ultimate decision-maker. There’s no need to ask for permission (outside of your HOA, if applicable) to paint your home, remodel your kitchen, or make improvements to the yard. Furthermore, you get to benefit from any improvements you make to your home by enjoying added resale value, especially if you opt for improvements that are known to yield a high return on investment (ROI).
Home ownership comes with a lot of enticing personal and financial benefits. By working with an experienced real estate professional, you can have the confidence in knowing your best interests are always at the forefront of the home buying process. To learn more about available properties in Greenville, South Carolina, contact The Parker Group.