While homeownership comes with its own set of challenges, there a quite a few benefits of buying a new house. To determine whether owning a home is a worthwhile investment for you, here are a few pros of choosing ownership over renting or leasing.
Homes Can Make Great Investments
Home markets fluctuate and if one buys during a recession—aka a ‘buyers market’—there are generally some great opportunities for good deals.
Furthermore, as the market recovers from a downturn, home markets increase and improve the overall value of your investment for a greater return should you sell.
Buying Builds Equity
Every monthly mortgage payment made contributes towards reducing the total loan amount, which increases equity.
Mortgage payments in a sense are like a form of savings, and as a home’s value increases, it creates more equity for the owner. Equity can be borrowed against to cover an array of financial needs.
Owners Enjoy Substantial Tax Deductions
Homeowners typically qualify for federal tax deductions and state tax deductions when applicable. Mortgage interest and payments for property taxes may be eligible to be deducted from annual taxes.
In certain situations, loan discount points and closing costs might also qualify as tax deductions.
Buyers Build Credit History
Owners who are consistent with timely monthly loan payments are boosting their credit rating by demonstrating fiscal responsibility to other lenders. Good credit means you are considered a low risk for defaulting on future loans, so interest rates will be lower upon approval.
If you are looking to take advantage of the benefits of buying a new house in Kansas City contact Brookfield Residential online or call (816) 429-7427 today to speak to one of our experienced professionals.