Choosing to purchase a home means always having somewhere to lay your head after a long day no matter what’s going on around you. A place to explore hobbies, kick back and relax or even start a family down the road. But what are some of the more long-term benefits of being a homeowner?
It’s an Investment in Your Future
Purchasing a home is a huge financial commitment, but with that great responsibility comes great promise of future stability. As with every product for sale, the price and value of a home will change once you’ve purchased it. Unlike other items such as vehicles, the price doesn’t just instantly lower after you’ve used it. Rather, the value you can get out of your home only increases with every monthly payment.
Equity is the term for that created value, the difference between how much you still owe on the home and how much it’s currently worth. This is one of the biggest differences between paying rent each month versus paying a mortgage payment, especially now as rent prices are surpassing mortgage costs for similar properties.
You Control the Day-to-Day Operations
Lack of control over when a landlord can come into a rental property or change the monthly cost is one of the most frustrating parts of being a tenant. When you purchase a home, you’re breaking free of that cycle with set mortgage payments and no one bothering you or showing up uninvited.
How you run your home also becomes a matter of your preference. Want to have high-efficiency appliances? You can make that decision without feeling like you’re throwing money away upgrading someone else’s property. Saving on utility bills with more efficient household items is just the beginning of the decisions you can now make as a homeowner that create long-term benefits and value.
Equity Isn’t All You’ll Be Building
When you want to take advantage of building equity you’ll be able to make extra payments on your mortgage or refinance it completely into a shorter term and “cash out” your existing equity. If you do refinance, you can choose to invest your earned equity into the property to raise its value or look at purchasing another home to turn into a rental property.
Being able to generate extra side income is one of the most common reasons new homeowners decide to purchase. It gives them the freedom to live in an area for a few years and either settle down or rent out the property when they want to move elsewhere, slowly building up properties and revenue as they go.
On top of all of this, your credit will grow stronger as you make on-time monthly payments which means lower interest rates on future mortgages or easier approval for a more expensive property you’ve had your eye on.
At the end of the day, there are enough benefits to owning a home that the only decision to make is the when and where for your property and mortgage. If you want some help figuring out the path that will work best for you, don’t hesitate to reach out to any of our agents here on the Potempa Team.
We’ve helped potential homeowners secure over $1 billion in financing this year alone by focusing on the needs and budget of each client that we connect with. Leverage over 25 years of combined mortgage experience to find your perfect loan today.