You can rent out a portion of your home or property
It actually goes further than just renting out a spare bedroom or garage apartment. Some people rent out their driveway for commuters who need a parking space or even patches of their backyard for those who want to grow a garden but don’t have the acreage for it. There are countless ways that you can make your house and surrounding property “work” for you by offering alternate income streams.
You have more control over your energy bill
Owning your home means that you have more control over your energy costs. While renters can sometimes control the heat and air-conditioning (but not always), owners have the ability to upgrade their heating and cooling systems, add insulation, install solar panels and more to make their home more energy efficient. Having maximum control over these aspects of your home allows you to save more money on your energy bill.
You can alter your home how you choose
When you’re a homeowner, you don’t have a landlord dictating what you can and cannot do with your space. You can paint, change the flooring, add cabinetry and more. You can even install upgrades that will make your home go up in value when the time comes to sell.
You can reap the rewards of appreciation
Every year that you own your home, it typically gains appreciation. The best part about investing in a home is that the appreciation applies to the total cost of the house, not just the amount that you put down. That is, homeowners reap the rewards of the appreciation accrued on the total cost of the house, whatever the amount of equity. And when it comes time to sell, your profits are exempt from capital gains taxes, within certain limits and exceptions.
You don’t suffer from unfair rent hikes
If you secure yourself a fixed-rate mortgage, you won’t be burdened by hikes in your monthly mortgage payments. However, renters have to face yearly increases in their rent. Sometimes, landlords are only allowed to increase it by a certain percentage, but in areas of high demand, there’s no telling what kind of increases landlords will make in their tenants’ monthly rents.
You gain tax incentives
Homeowners have the added advantage of tax deductions on mortgage interest and property taxes. These deductions alone can make it actually less expensive to own a home versus renting one when you break it down into monthly expenses. And don’t forget the aforementioned tax-exempt earnings when you sell your home. (There are limits and exceptions to tax incentives–be sure to consult with a financial professional.)
Of course, these are just the basics. Keep in mind that laws and regulations change frequently. If you’re taking the plunge into homeownership, give us a call today and we’ll help you scout out great properties in your area.