The Financial Perks of Owning a Home

When you think of the finances of owning a home your first thoughts are probably about the various costs that come with home ownership. These range from mortgage payments and interest to utilities and landscaping, to property taxes and homeowners’ association fees, amongst other costs like home repairs and maintenance. But the truth behind all of these costs and fees associated with homeownership is a wealth of financial advantages that you get from owning a home. These benefits can make buying a home the single greatest financial decision you ever make. Here are three financial perks of owning a home that you should know about.

Build Equity

The first financial perk of owning a home is the concept of building equity in your home. When you pay your mortgage payment every single month there is a portion of your payment that goes towards paying the principal, or the total cost of the original loan, and the rest goes towards paying off interest. But the amount that you pay in principle is not money down the drain, it is purchasing your house bit by bit from the bank. This increases your wealth as it makes more of your house your own.

Tax Benefits

Another major financial perk of owning a home are the incredible tax benefits of home ownership. By upgrading your home in several ways, as well as paying close attention to your home spending, you can identify the right ways to deduct home care costs for your family. For instance, if you install solar panels on your home this year, you can get a major tax credit. This is the last year to get the full 26% solar tax credit. Act now to take advantage of the tax credit and your solar panels will pay for themselves so quickly.

House Hacking

The final financial perk that comes with owning a home is the ability to house hack. House hacking is a practice growing popular today where people purchase a house and rent out the extra units or bedrooms. This can not only cover their living costs for free, but even make a profit every single month from your rental income. This is a great option that just isn’t available to renters.

Owning a home is often seen as a financial liability. But in reality, owning a home is a great financial asset. Consider these three benefits of owning a home and get out there to purchase your first home today.

Check out this article on home improvements to think about as it gets warmer!