What are the Advantages of Being a Homeowner?
Sometimes we just think, is owning a home right for you? Buying a home comes with a lot of tedious tasks, but also a lot of rewards. Yes, it can be a trying experience, but the positives of being a homeowner far outweigh the negatives. Of course, buying a home means putting a big amount of money, but you should just look beyond the numbers when making your next move.
Increases your Equity
Equity is the amount left after subtracting the amount you owe on your mortgage from the total value of your house. And this is the prime factor for making money in real estate. You can build your equity in two ways:
1. With the increase in home value, more equity is created for you.
2. With each monthly loan payment you make, a fraction goes toward reducing the amount you owe on your loan. In other words, paying a loan is a form of savings because it builds the equity in your home.
Also, when you make extra payments on your mortgage, or when the prices are going up and the interest rates are going down, your equity builds faster. You can also buy against your equity to meet an array of financial needs, such as to start your business, buy an investment or for other purposes So, equity is a very handy financial asset.
Be A Homeowner
Once you’ve your own home, you have the security knowing that nobody can kick you out of your home except the bank from where you’ve taken your mortgage. In case if you’re living on a rent, landlords can decide anytime to sell, and at that time you could have people coming in your home every day to inspect it. They could raise your rent or sometimes actually move in to live themselves.
And what if you feel like making any changes to make your place feel like home? You need a landlord’s permission even for the smallest of things. But, it is not so when you own your own home, it’s your castle, you can change and update as you like.
No Taxing at All
If you buy a 1 BHK flats in Mohali as your main property and the value of the home rises up than what you paid for it, when you sell that for money, you keep that gain, tax-free.
Another unique advantage of owning your own home is that taxes are not applicable on the sale of your main residence.
The real estate will have its up and downs, but the price of your home should rise like they’ve in the history. You may find that you’re paying higher repayments than the rent you’re paying, even when the property you bought is smaller.
But, to put simply, real estate value grows much faster than inflation and over the time, the growth in the total value of your property should outstrip your savings ability. For example, a deposit of Rs. 30,00,000 in the bank would earn Rs. 15,000 p.a., if interest rates are at 5%. But, if you use that money as a deposit to purchase a Rs. 30,000,00 home, which grows in value by 5%, your gain is Rs. 1,50,000.
After a few years, the growth in value of your property should also outstrip the taxes, fees and rates you pay as a homeowner.
So, if the above benefits have instigated you and now you think that it’s the right time to buy a home, then you should also check out: Best tips and advice to buy flats in Mohali
For further advice, Call SBP Group at +91 93160 05252 and let’s get started on the road to home ownership.