Should You Buy or Rent a House in 2021?
Renting a house may sometimes sound cheaper than buying, but is it really in the long term?
- What are the Tax Benefits of Buying a House?
- How to Make the Property Value Appreciate?
- Why is Mortgage not Bad Debt?
- How Can Cloverhut Help You Buy a House?
What are the Tax Benefits of Buying a House?
Buying a house is the way to go and always will be. There are a lot of perks related to buying a house such as the ability to decorate how you want it, not having a landlord, etc. Economically speaking, one of the advantages associated with owning a house is the tax benefits you get. In fact, homeowners benefit from a series of tax deductions that renters cannot avail themselves of. People that buy houses can deduct mortgage interest every year. In addition to this, there is also a possibility to deduct interest paid as part of closing. If you do not know how to proceed, you can ask your lender or mortgage broker. They know what to do and can easily help you out.
How to Make the Property’s Value Appreciate?
There is a possibility to gain from owning a house and that is from real estate appreciation. The great thing about this hack is that you do not need to do anything specific. It only requires that you select a house that is located in a prime neighbourhood and its value will increase over the years. In other words, your house increases in value while you live in it. Needless to point out that the property’s value will further increase if you make renovations, add extensions and take great care of the property. If you have a part of your house that you do not need such as a room, a garage or office space, you could make extra monthly income by renting in it. In the case of a separate office space, it will increase the value of the property as the future buyer will not only buy an outstanding house, but they will also buy a place to base their business headquarters.
Why is Mortgage not Bad Debt?
Similarly, to the majority of homeowners, you will probably have to make mortgage payments every month for twenty years so as to pay back your house and interest. As previously mentioned, mortgage interest is deductible from taxes. In many instances, you can also deduct late fees. Once again, if you happen to rent a part of your property, the long-term renter will end up completely or partially paying your mortgage off. There are some cases in which you can obtain a house without having to make any down payments and that would result in having a house for free. Keep in mind that while the renter pays off your mortgage, the property’s value keeps increasing. Homeownership is also a great way to increase your credit score which will help you benefit from a much better line of credit. You will not have to worry about getting your new car as your newly approved line of credit can help you.
In finance, there are two types of debt. There is bad debt and then there is also good debt. Bad debt is defined money owed for financing liabilities such as credit card payments, payday loans, personal loans, etc. This basically includes any type of consumer debt. On the other hand, good debt is defined as money that is owed to finance assets that appreciate in value. Clearly, your mortgage fits this category as your house is an asset that can generate cash flows and increase in value. Mortgage can never be bad if used in such a way.
How Can Cloverhut Help You Buy a House?
When it comes to buying a house, Cloverhut can come in handy. After reading this article, you understand that you should undoubtedly buy a house instead of renting. Acquiring real estate can end up being pricey and out of reach for a lot of people. This is where Cloverhut comes in play by offering this revolutionizing real estate solution that makes homeownership accessible to everyone. Thanks to our solution, you can now buy a house for tickets at a price of 2€ by taking place in our house raffles. For the ones that want even more benefits, there is the CloverClub that will satisfy you. Make sure to check out its perks and to take part in the next house raffle!
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