Owning a house is being referred to the American dream. Many people dream of having their own home or space one day. However, it is important to point out that if you buy a house before you are ready, it can drain your pockets easily which can affect you for a long time. It is important that you buy a house after you have studied all the factors that contribute to its up and down. Here are the top five reasons why you should buy a house:
- You are prepared
Buying a house is the most expensive investment that you are going to make. It is important that you are ready financially and emotionally. You need to consider your financial capability by checking if your savings is enough to pay for the down payment and the cost of upkeep.
- Building equity
The value of your property tends to go up over time. The housing market can either go up or down. The volatility of the market can lower the value of the property in a short period but in the long run, the value tends to go up. You can also use the money that you put into the house when you decide to downsize when you retire. You can also use the equity to replace your current house with a nicer one.
- Job security
Keep in mind that you will need to pay the mortgage every month. It will be better if you will have a steady source of income to pay for the expenses. The lenders will look at your job history when you apply for a mortgage. Normally, they will prefer if you stay in one company for at least two years. If your paycheck is not enough, you can look for a part-time job to add more to your income.
- Tax Break on Mortgage Interest
When you pay on your mortgage, the majority of your payment will go to paying the interest. You can deduct the payment you made for the interest when you file your personal income tax. This can help you lower down the taxes you pay each year.
- Maturity and stability
Buying a house need mature decision-making. Owning a property is also a sign that you already desire for stability. It gives you the chance to decide where you want to live, which school you want your kids to attend, and in which place you want to retire. If you believe that you are mature enough to make crucial decisions, it might be the best time for you to buy a home.