Purchasing a new home has many advantages over buying or remodeling an existing home, including the financial benefits. Becoming a homeowner is one of the biggest economic decisions you will ever make, but many financial benefits come with owning a new home. Learn more about the benefits of new homeownership including tax deductions, increased credit score, and payment stability.
Homeowners get various tax breaks for owning a home, including a deduction for the interest and property tax portion of the mortgage. This deduction is helpful for off-setting the financial investment that comes with buying property, since many homeowners spend the first few years mainly paying off the interest of a mortgage. Within the first year that you buy a new home, you are also able to write off any mortgage points on your loan, which often leads to significant savings.
Owning a home is great for your credit score, as having a mortgage is considered “good debt.” As long as you continue to make your payments on time, your mortgage is likely to increase your credit score, as well as proves your credit-worthiness for other loans or a new line of credit. In fact, it can even lower your monthly car insurance payments, saving you a lot of money in the long run!
There are many reasons why owning a home is more beneficial than renting, including more control over the daily and monthly housing costs. Unless the terms of your mortgage change, you will know how much you will spend each month, unlike paying a monthly rent which can change over time. Also, homeowners have much more control over costs including home improvement projects and appliances, and can choose the most energy and cost-efficient options. However, renters often have no say in their appliances, but have to pay a utility bill each month depending on the amount of energy used. As a new homeowner, all of the financial decisions you make with your home will be geared specifically toward your own goals.
These perks should not be your only deciding factors to buy a new home, but they are great additional benefits to keep in mind. Remember to always consult with your financial planner, accountant, or attorney before making any final decisions.
Create Your Dream Home with Rainbow Construction
Whether you are seeking the dream kitchen you have always wanted or the dream home you’ve always pined for, Rainbow Construction is here to help. Our dedicated team can help you realize the true potential of your current home.
With over 55 years of experience and a fantastic reputation, Rainbow Construction, located in Waldorf, MD, can make your dreams a reality. We serve St. Mary’s, Charles, and Prince George’s Counties, Southern Maryland, and Washington, D.C., and pride ourselves on providing excellent customer service, professional expert workers, and competitive rates. To learn more about our custom home building, visit us online or give us a call at (301) 843-1018. To learn more about our services and who we are, follow us on Houzz, Pinterest, Facebook, Twitter, Instagram, and LinkedIn.