Benefits of being a first time homebuyer
Like most people who rent apartments (or condos, as the case may be), you, too, are likely to be cautious about taking that big leap and finally moving into your own home. You may understandably be worried about the seemingly horrendous cost that would be involved, from the actual price of the property to the regular maintenance it requires. But if you give the matter much thought, you’ll surely realize that owning a home really does have several advantages. Here are just a few of the benefits of a first-time homebuyer:
Save money. It may not be obvious to the naked eye, but buying a home can save you money in the long run. For example, you can subtract property tax and mortgage interest from your expenses each year. Plus, you can also apply for support from the federal government and many state governments if you need help financing your first home. And not to mention the lower monthly payments. Many first-time homebuyers find that their monthly home expenses decrease once they own the place.
A good investment. A house is one of the strongest investments you can make. The National Association of REALTORS stated that even during times of economic instability, home prices have risen steadily over the long term. This means that it is not unlikely that you will acquire capital gains on the amount you initially withdrew.
Build your credit. If you don’t have as good a credit history, buying a home can give you the perfect opportunity to rebuild your credit. Make sure you pay your monthly mortgages on time, and lenders or creditors will likely trust you more and more with each timely payment you make.
Borrowing power. Owning your own home can go a long way in building your equity and lending power. Once you’re a certified homeowner, you can use that to help you build your credit. Imagine, with an increased credit limit, you can pay your child’s tuition, finance a trip, get through an emergency more easily, etc.
Financial stability. Deciding to own a home means a long-term commitment on your part. Unless you can pay it off all at once (something very few people can, of course), you’ll have to pay a fixed or adjustable interest rate for the next few years, depending on the financing you choose. With that amount or dollar figure in mind, you’ll most likely be able to calculate your payments in subsequent years, a stability in finances that eludes people who are renting.
