Homeowner Tips

What Are the Benefits of Owning a Home?

The thought of owning your own home is exciting. Owning a home is a big investment and it can be challenging to decide whether it’s right for you. Here are the top four reasons to own a home instead of rent.

  1. Pay the Same Amount Every Month

When you rent, the price can go up every year or as you renew your lease agreement. With a home mortgage, you’ll pay the same rate every month. You’ll know exactly how much you need and it’ll make it easier to create a predictable monthly budget.

The only potential change is the property taxes. But they rarely change much from year to year. Some buyers have found they pay less for their monthly mortgage than they do for rent plus utilities.

  1. Build Equity

In real estate, equity is the estimated market value of a home that subtracts the amount of mortgage left to pay and any other liens against the property. The longer you live in your home, the more you’ll be able to pay the principal balance of any liens. Often, the equity grows as the balance of any liens against the property shrinks while the value of the property increases.

  1. Gain Tax Benefits

There are many tax benefits to buying a home. You’ll be able to deduct interest on your mortgage. Any interest you pay as part of the closing costs will be deductible. This information is usually found on the settlement sheet. Just before tax time rolls around, your lender will send you IRS Form 1098. It’ll show the money you’ve paid in interest on your loan for the year.

You’ll also deduct private mortgage insurance (PMI) if you have it. Property taxes are also deducted. This alone saves you thousands of dollars. First-time buyers may have additional deductions, so ask about that. And finally, if anyone works from home, you can deduct the home office space.

  1. Make Changes to Your Home

You get to choose the floor plan that fits what you have in mind. You’ll have the ability to change the colors of any room at any time. When you own your own home, you can make any changes you want. You’re not beholden to the landlord’s requirements. If you buy your home before it’s built, you can ensure that the design is the way you want it.

Owning a home offers so many more benefits besides these four reasons. It can also build your credit score and it’s one of the best investments you can make with a good chance of a huge return on investment. And home is more than just a place to hang your hat and get a good night’s sleep. It’ll be a place where you’ll make many memories.

To stay on top of great resources from Kyle and nearby, connect with us on Facebook, Instagram, and Twitter. Looking to move? Explore the new home builders in Kyle or contact our Crosswinds team.

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How to Buy and Sell a Home at the Same Time

It can be stressful to buy and sell a home at the same time. You fear that you’ll sell your home faster than you can find one.

Or worse, you end up with two mortgages as you found your new home faster than expected. If homeowners could do what they want, it’d be to move in their new home and then sell their old home after they’ve gotten settled. But it still presents the problem of being stuck with two mortgages. Here’s what you can do to ease the anxiety of buying and selling a home.

Study the Market

Before moving forward with hunting for a new home and putting yours on the market, understand the housing market in the areas where you’re buying and selling. Better yet, talk to your real estate agent. They can tell you whether the market leans in the favor of buyers or sellers.

A seller’s market means you’re more likely to sell your home quickly while it may be a struggle to find a new place to live. You may have to expand your search for a new home.

A buyer’s market means your current home will have an uphill battle. Often, it requires making updates to your home to stand out from the other homes. Or, you’ll have to set a price that’s reasonable. Buyers won’t look at the home if it’s being listed for too high.

If you sell first, then you’ll have to find a temporary place to live while looking for your next home. You won’t have the stress of a down payment. And if you buy first, you’ll have two mortgages and it can make it harder to qualify for a new mortgage since you still have responsibility for your old home.

Explore Financial Options

It’s easy to know that if you sell first, you’ll be prepared for the additional costs of renting between homes. To help ease the pressure of finding a new home quickly, ask your real estate agent about doing a rent-back agreement.

For those opting to buy first, ask your realtor about contract contingency and a bridge loan. There are advantages and advantages of both options.

If nothing else, be prepared for the worse outcomes. When you accept them, it’ll be easier to manage. For example, if you accept that you may have two mortgages for a few months, then you can plan for that. You may have to put off selling while you put some money away to handle two mortgages. At least, you’ll be prepared for it instead of being surprised by it.

It’s easy to feel pressured into making fast decisions. Don’t. It’s important you take your time and find the right home. It’s good you’re thinking about these things and planning. That will take out some of the pain in buying and selling a new home at the same time.

To stay on top of great resources from Kyle and nearby, connect with us on Facebook, Instagram, and Twitter. Looking to move? Meet the Kyle home builders or contact our Crosswinds team.