When it comes to investing, housing is always a top option. There are advantages to buying a new home over remodeling an older one that you should consider. Owning a home is the biggest financial and economic decision you will likely ever make, but the benefits will definitely reward you.
Financial Benefits of New Home Ownership
- Payment Stability: Owning a home gives you more control over housing costs than renting does. Monthly rent can change each month but a mortgage remains fixed so you know what you will be spending every month. You can also choose more effective and energy-efficient options when it comes to housing costs and appliances, thereby saving you money.
- Tax Deductions: When you own a home, you get various tax breaks that others do not. Potential breaks include deductions for interest and property tax portions of your mortgage. This helps to offset the initially large financial investment one makes when purchasing a home, especially when you consider that most of the first year of payments go toward the interest. When you buy a home, you can write off any mortgage points on your loan within the first year, which adds up to big savings.
- Credit Score Boost: Mortgages are considered to be good debt, so owning a home can bump up your credit score. So long as you make payments on time, your credit score can move upwards. This also helps to improve your credit-worthiness when it comes to consideration for other loan and can even lead to lower car insurance payments.
There is something to be said for owning your own home. Buying a piece of property and making it your own to pass on to future generations or to sell for a profit Owning affords you many more luxuries than renting, so you should consider the personal and financial benefits to owning a home today.