Skip to main content

BENEFITS OF HOME OWNERSHIP

The decision to purchase a home is exciting and a major investment for your future. Because there is only so much of it to go around, real estate is the top choice for many investors and the desire for most families.

This article is designed to highlight some of the many benefits of home ownership and how buying a home can often turn the American and Canadian dream into a reality.

One of the most profitable markets in real estate is rentals, which means that many families are paying to live in a home that isn't their own.  In some cases, renting a home is necessary.  For all others, the money that would be spent on rent could instead be used to pay a mortgage.  In fact, monthly rent payments often exceed that of a typical mortgage payment.  One of the greatest benefits of home ownership is putting money into something that you can call your own and knowing that the monthly payments are going toward your home's equity.

Speaking of equity, many properties experience a growth in value as more development moves into the area or the economy strengthens through an increase in job opportunities. If this happens, home values soar and owners can bask in the glory of their new found profit.  When you purchase a new car, it depreciates the moment that you drive off of the lot.  When you buy a home, however, it has the potential to appreciate year after year. There are few things in life that can offer you a return above and beyond your original purchase price, but a home can.

When you own a home, you will enjoy the freedom of decorating and making any changes that you choose without needing the permission of a landlord or property owner. In addition, you may even be able to use your home's equity to finance some needed improvements and/or repairs.  In some cases, these changes may even increase the value of your home.  An upgraded kitchen or bathroom, hardwood flooring or an additional room are examples of changes that could result in added value.

Another advantage of home ownership is the tax benefits that are available. In the United States, the interest paid on a home mortgage as well as most property taxes paid are tax deductible.  For additional information on deducting mortgage interest and property tax, consult the IRS or a tax professional. In Canada, there are also some tax benefits of home ownership. There is a first-time home buyers tax credit; medical expense tax credit; tax benefits that may apply when selling your home; provincial tax credits you can claim on your tax return; a home buyers plan; rental income and allowable expenses and the GST/HST rebate for new residential rental property; home expenses you can claim and how the harmonized sales tax (HST) will affect new home sales in Ontario and British Columbia. For additional information on these tax benefits, go to http://www.cra-arc.gc.ca/myhome/ or consult a tax professional.

In addition to providing yourself and your family with a feeling of stability and permanence, home ownership can also help strengthen your credit profile through timely mortgage payments and a steady financial history.

Finally, there is no better investment than owning your own home which will lead to a secure future for you and your family.

If you would like more information on how to achieve your home buying dreams, visit me at www.valeriemcconville.com or call me direct at (780) 700-8638 and let's get started!

Comments

Popular posts from this blog

4 TIPS FOR A PRODUCTIVE 2021

  4 Tips for a Productive 2021 (Family Features) This year has taught many workers a thing or two about being productive when offices and homes blend into one. As the calendar turns to 2021, consider these key products and processes to stay productive next year. Find a system (and stick to it): Creating an organizing system is an easy way to ensure your at-home workspace is ready for optimal productivity. Designate space to house all your work items – a drawer, cabinet or box – and keep work items organized by type (pens, papers, computer gear, etc.) At the end of each day, transitioning to “offline hours” can be easier when you have a place to stow your work items. Start your day clean: Studies have shown cleanliness has a direct impact on productivity. Yet, many people struggle to find the time and energy to clean, especially at the end of a busy day at home. An option like The DEEBOT T8 from Ecovacs provides a hands-free cleaning experien...

UNDERSTANDING HOW POCKET LISTINGS WORK

Have you ever wondered what a “pocket listing” is?  Learn a little bit about this trend in hot markets and how an agent familiar with pocket listings can help you sell your home faster or find homes which haven’t hit the market yet. If you’ve been searching for a home or have been considering selling your home, you may have heard the term “pocket listings” from real estate agents or even friends and family. What is a pocket listing? Where did the term come from? How are pocket listings being used today to buy and sell homes? Pocket listings are homes which are for sale but not yet widely advertised or entered into typical MLS databases. Often an agent will enter into an agreement to sell a home, but will first reach out to their personal and professional network to see if anyone may be interested in a quick, private purchase. Ideally, the agent knows someone or another agent who has a client interested in the home and the whole process of listing and marketing the ho...

UNDERSTANDING MULTIPLE OFFER SITUATIONS

In a seller’s market, multiple offers are not uncommon. But what does that really mean?  And how should you and your agent work together to generate the most interest in a multiple offer situation? Find out more in my post…  When inventory is tight and a market heats up, sellers often dream of finding themselves in a multiple offer situation. In a multiple offer situation, more than one potential buyer submits a written offer on the home. With multiple offers on a property, the listing agent can then try and “shop the top offer” in order to try and get the best deal possible for their client. If you live in a hot market, how do you structure your listing in such a way that you get the best possible offers in a multiple offer situation? One strategy for cultivating multiple offers is letting buyers know that the seller will only entertain offers on a certain date. Rather than deal with offers dribbling in one at a time, there’s a deadline for offers. When thi...