Many people dream of home ownership, but life can easily get in the way of this goal. You may have accumulated a poor credit score or find it difficult to qualify for a good interest rate on a mortgage loan.
Regardless of the reason, it’s still possible to find a way to own a home in 2023. If you need some motivation, here are some reasons to consider buying a home this year.
A home is an investment with a historical trend of going up in value over time, which means a home is often valued higher than when you bought it after some time.
Appreciation can benefit the homeowner in numerous ways. For example, if you decide to sell the home, the increased value often means you can make a profit. Profitability could also increase if you make smart home improvements which increase the house’s overall value. Appreciation is also useful if you turn your home into an investment property.
Paying rent doesn’t help you build your overall wealth. Paying down a mortgage loan has a different result. By making mortgage payments, you build equity ownership in your home, which means you own more of your home with every mortgage payment. You can calculate equity by taking the home’s market value and subtracting the mortgage balance.
Compared to renting, homeowners can actually get a return on their housing expenses.
Building equity allows individuals to build wealth that they can use later in their lives or pass down to their children. You could view your house equity as a savings plan.
The U.S. government likes to reward homeowners with certain tax benefits. Some of your home-related expenses can be tax deductible, including interest paid on your mortgage, property taxes, and other items. You should consider consulting with a financial advisor about what deductibles you may be eligible for when filing taxes.
The home-related tax deductibles can make it easier to pay for a house, and they can also help you keep your equity if you sell your home. Generally speaking, you could take up to $250,000 ($500,000 for a married couple) as a gain without owing any federal income tax.
A home is a long-term investment that you live in for many years. This gives you more time to become part of the community and build relationships.
A mortgage can also provide financial stability since fixed-rate mortgages won’t rise over the years. If you were renting, a landlord could raise your rent every year.
Owning a home gives you more control over how to style, renovate, or live in it. You don’t need to ask anyone’s permission to upgrade appliances, build additional rooms, plant a garden in the backyard, or live with multiple pets. There are local laws and HOA rules to consider, but you have far more freedom to choose what you would like in a home compared to renting.
Need Help Qualifying for a Good Mortgage Loan?
One of the best ways to build wealth is to own a home. There are many obstacles that can get in the way of owning a home, but it’s worth it to focus on your goal. At Improve Credit LLC, our experienced credit consultants can help you with credit repair, so you can qualify for an optimal interest rate on a mortgage loan.
Get in touch with us to get a free analysis of your situation and start making plans to own a home.