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Five Things You Didn't Know About Home Ownership

Written by Posted On Saturday, 21 July 2018 14:30

While stressful occasionally, purchasing a home is an exciting process that signals the beginning a new chapter in your life.  As soon as you've finalized the mortgage and closed the deal, you will join the ranks of some 126 million and U.S. homeowners.  Nevertheless, there are a couple things you should know about home ownership and what it requires.

#1) It Lowers Your Stress

 

You will probably feel calmer and more relaxed when owning a house.   Statistics show that one-third of Americans suffer from intense chronic stress.  By owning a home, you can relax knowing that you won't get kicked out by the landlord or be forced to move.  It's not uncommon for landlords to demand their tenants to move once their lease has expired. Even if a landlord allows a tenant to stay beyond his or her lease, they might increase the expense of leasing to the point at which the tenant can't afford it.  Owning a home means you could avoid these headaches and the stress with which they carry.

#2) It's Your Biggest Asset

 

If you're like the majority of Americans, your home is the biggest personal advantage.  According to a Pew Research Center poll of more than 2,100 adults, 81 percent of respondents said purchasing a home is the smartest long-term financial investment.  As soon as you've paid off the interest of your mortgage, all future payments will go towards the principle, letting you build equity.  The more equity you have in your house, the greater its value as a financial asset.

#3) Security is Your Responsibility

 

In addition to maintenance and repairs, you are accountable to your home's security.  Neglecting to lock the doors and windows, for instance, increases the risk of burglary.   It is a cost-effective security solution that eliminates the need for professional installation services.  As soon as you receive the hardware -- movement sensors, window sensors, door sensors, keypads, etc. -- you can install them in your home.  A DIY security system will offer peace of mind, enabling you to sleep better at night knowing that your property is secure.

 

#4) It Requires Maintenance

 

You won't have the luxury of calling your landlord once the air conditioner stops working in your home.  As a homeowner, you're responsible for all repairs. Whether it's leaking faucet or a broken air conditioner, you are going to carry the burden of performing all repairs and upkeep on your dwelling.  According to HGTV, homeowners must set aside up to 3 percent of their home's sale price annually specifically for this purpose. If you paid $200,000 for your house, set aside $3,000 each year for repairs and maintenance.  Doing this will protect your personal finances from unforeseen expenses associated with home ownership.

#5) Interest Is Tax Deductible

 

You cannot deduct the cost of your home from your taxes, but you can deduct the interest.   Bankrate clarifies that U.S. homeowners can deduct interest paid on up to $1 million of the mortgage from their federal taxes for 2018.  While it might seem like an insignificant amount, interest payments quickly add up.

 

Home ownership is a big responsibility, but that shouldn't discourage you from moving out of an apartment or other rental property.  A home is a major financial asset that is good for your physical and mental health. Just remember to create a safe environment for you and your family and perform all necessary repairs and maintenance.

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Donna Johnson

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