Homeownership is said to be an American Dream. Why do people dream to be homeowners? There are some great benefits of owning a home. Don’t combat saving for a down payment for a new house. It may seem daunting to take this big financial step but it is worth it in the long run. Following are some reasons why you should own a home in Lake Elsinore:
- Gratification of homeownership
Purchasing a home is a great accomplishment and a moment of priceless joy! You may be enjoying renting and having the landlord taking care of the property maintenance, but owning a home gives you pride at a different level. Pride is having a place that is truly and genuinely your own, which you can style and pattern yourself. Styling your own place with your own taste and desire gives you the pleasure to unwind and relax and feel at home.
2. Increased security and privacy
Owning a home gives you a sense of security and privacy. It’s a place you can call your own and feel safe. If you are renting you can have the landlord or property managers making visits now and then do property inspections and to make sure the property is kept up to the code and as per the lease agreement. But when you own your house then you can make your own rules and feel free to add security features and privacy settings of your own choice. This gives you peace of mind when you are away from home.
3. Tax benefits
With homeownership comes some great tax benefits.
Home sale tax exclusion-as a homeowner, when you want to sell your home you get a break on the profit of the sale. For married couples filing jointly, you can get a tax break on capital gains for up to $500,000, and for single tax filers, it is $250,000.
Mortgage tax credit-mortgage credit certificate holders can get a credit of anywhere from 10% to 50% of the mortgage interest paid during the year.
Mortgage interest tax deduction-you can deduct any mortgage points and also mortgage interest on up to $750,000 of a home loan (for married couples).
Please refer to your tax advisor for more detailed tax benefit options and advise.
4. Source of extra income
Being a homeowner gives you the option to use your home to earn some extra side money. This can allow you to spend some extra time with your loved ones rather than taking a second job. With owning your home you can rent out that extra guest room. Generally, students and young adults are interested in renting out rooms for school and work purposes.
These days, you can even become an Airbnb or a Vrbo provider. If you are not tech-savvy or if you don’t have the time, there are online companies that can take care of the appointments, scheduling, and cleaning for you. You need to read your HOA rules and regulations before being an Airbnb or a Vrbo Host. Some HOA’s won’t allow this.
5. Access to equity when needed
Home values tend to generally increase over time which means you are building equity by owning a home. This built-up equity can be available to you as a low-interest loan if needs arise or if there’s an emergency for money. These equity loans are low in interest since they are secured with your home as collateral.
6. More stability
As a homeowner, you are more prone to being involved in the community. HOA’s organize several community events throughout the year. You will get to know your neighbors and make new friends and be involved in community events, BBQ’s and festivals. You don’t have to worry about increased rent payments by landlords. If you have a 30 year fixed mortgage loan then you know that your monthly mortgage amount will be fixed for 30 years!
Purchasing a home is a huge financial investment and commitment. Once you are ready to buy and have made up your mind, please feel free to contact us at 951-314-4251 or email us at [email protected] to get a complimentary consultation! Legacy Homes Realty is located in Lake Elsinore and we provide real estate sales and purchase services to all surrounding cities and counties. We are specialized to do home valuations and have been in business for more than 15 years.