Many people don’t need to think twice about the benefits of owning a home, because there’s one huge advantage that’s pretty obvious: It’s your home. Even if you’ve financed your purchase, a chunk of your monthly payments puts equity in your home and brings you one step closer to owning it free and clear. When you rent, your monthly payments put a roof over your head, but you never see that money again. After all, you’re really just living in someone else’s home, and simply “borrowing” it for a little while.
But the advantage of owning your home doesn’t just end there, and there are so many other benefits that are often overlooked, including:
Bigger home, smaller monthly payments
If you’ve crunched some numbers, you may have discovered that you could purchase a home in the same area you’re living in at a monthly rate that’s much lower than you’re paying in rent. But a lot of the time, you could also get much more space and for less money. This could mean living in a larger house, as opposed to a smaller apartment, and for less. In other words, the homes that might not be affordable to rent, can actually become affordable when you purchase—especially if you have a large down payment.
You can customize your home to your liking
Whether you’re in the mood for an extreme home makeover or you just want to paint a room, you’ll need permission from a landlord when you’re renting. For obvious reasons, major changes aren’t usually allowed. Expensive upgrades may or may not be, but who would want to spend money to replace old carpet with new hardwood in a home that isn’t even their own? Some landlords are really against any changes, and won’t even allow you to paint. But when you own your own home, you can practically do whatever you want and you don’t need to ask anyone for permission. The only exception could be when it comes to certain outdoor projects—you may need to follow county regulations, apply for permits, and/or receive permission from your HOA. But as long as your request is reasonable, it probably won’t get denied.
When tax season rolls around, there are a lot of things you can write off as a homeowner, which can help you save money. This includes things like your mortgage interest, property taxes, PMI, and so on. Until you become more familiar with what you can and can’t write off, you might want to meet with an accountant during your first year as a homeowner.
Protection from inflation
When you rent a home, it’s not unusual for your lease renewal to also come with an increase in monthly rent. It’s almost always unavoidable, especially as the years pass—the cost of most things, especially rental housing, will just continue to go up. But assuming you purchased your home with a fixed-rate mortgage, you’re locked in with that monthly payment for the life of your loan. That means that 10, 15, 20 years from now when average rent prices have gone way up, you will still be paying the same monthly mortgage payment from when you initially purchased your home.
Do you want to buy a home, but need cash for your down payment and closing costs? If you’re receiving annuity payments, J.G. Wentworth may be able to purchase some or all of your future payments and provide you with a lump sum of cash. Receiving your money sooner can make it easier to make a large purchase, such as a home. In addition, J.G. Wentworth can help you with financing. With the mortgages offered through our J.G. Wentworth Home Lending program, we can find a home loan that best suits your needs and budget. Contact J.G. Wentworth today!