Benefits of Homeownership

Buying a home is the biggest financial decision many people make. The benefits of homeownership don’t come without costs and limitations. While it may sometimes seem challenging, the many benefits that come with owning your own home make it all worthwhile.

In the short term, renting may seem like the best option, but here are some good reasons that owning your own home can create real value for you over time.

A good long-term investment: 

With COVID-19 driving the marketplace, those increases will continue, at least through the short-term. If you are one of the unfortunate few whose value decreases, the land on which the home sits can become more valuable. You are investing in an asset for yourself rather than a property management company or landlord.

Building equity:

Your equity is the difference between what you can sell the home for and what you owe. Equity grows as you pay down your mortgage. Over time, more of what you pay each month goes to the balance on the loan rather than the interest, building more equity.

Greater privacy:

You own the property so you can renovate it to your liking, benefit renters don’t enjoy.

Home office: 

The work-at-home phenomenon may not vanish after the pandemic fades, which means more of us will need a home office. The right setup makes a difference in comfort and productivity. Those needing that work-at-home space can find it on the market – if they act quickly.

Stable monthly payments:

A fixed-rate mortgage means you’ll pay the same monthly amount for principal and interest until the mortgage is paid off. Rents can increase at every annual lease renewal. Fluctuating property taxes or homeowner’s insurance can change monthly payments, but that typically doesn’t happen as often as rent increases.

Stability:

People tend to stay longer in a home they buy if only because buying, selling, and moving is difficult. Buying a home requires confidence you plan to stay there for several years.

Other benefits for owning a home 

• It gives you a better level of control over your home and the ability to make improvements as you see fit.
• If your property increases in value, perhaps through market conditions or improvements made, the gains will be yours.
• Increasing the value of your home creates equity (the property value less the debt you owe) and allows you to trade up to on your next move.
• Monthly mortgage repayments can be very competitive compared to what you would pay to rent a comparable property, and potentially even cheaper.
• The monthly payments you make all contribute towards eventually paying off the mortgage and you owning the property outright.
• Owning a property outright means that you can reduce your living costs as there will be no rent or mortgage to pay, especially useful later in life.
• In retirement, there are schemes that allow you to release equity from your home to help fund your retirement.
• Your property can be passed on when you die.

The Bottom Line:

Buying A home is an investment that comes with many investment benefits but also risks, which makes it an investment that is not for everyone. Weighing the investment benefits against the risks is important. A rational comparison of pros and cons can help you decide whether to put your money into a home investment or potentially find better returns elsewhere.

Have a Look at your New Home

Our new listing in Blairmount, Located just opposite of Blairmount public school, and Proposed Hillcroft Shopping centre surrounded by beautiful homes and great neighbors, this spacious family home is sure to impress! Being perfectly presented inside and out boasting an immaculate interiors plus an ideal layout. With lots of space for a growing family with four great size bedrooms. This property is just a short drive and to MacArthur Square, Gregory Hills and Campbelltown train station.

Click to see the listing

Looking for an agent to sell your home?

At Empower Estate agents, We provide a great experience, outstanding marketing & the best negotiations tactics to help our clients to achieve their property goals. One of our best real estate agents in Blairmount Sana Ullah, is a well-experienced, trusted, and reputed real estate agent in Sydney with his excellent marketing skills.

We believe, Buying or Selling a home is one of the biggest financial decisions of your life. That’s why finding a real estate agent with the experience to guide you through the process is key. Our extensive Airds real estate market research and strategies will help you to sell your property at the highest value.

If you are thinking to sell your home with a professional real estate agent who can bring top results, first get your Free market appraisals from here and we will let you know soon the updated value of your home in the local real estate market.