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Virtual Realty provides a series of essential TIPS for NZ house Buyers.
Page 2: Benefits of home ownership. | |  |
Benefits of Home Ownership
- Credit: There is no better way to improve your credit standing than to own a home, provided that you keep your mortgage payments in good standing.
- Freedom: If you own your home, you are free to improve, renovate or paint it any colour that you wish. No landlord is going to tell you what you can or cannot do in your own home.
- Investment: Any improvements that you make will increase the value of your home. As homes go up in value, your personal residence will increase in value, assuming that you have purchased in a desirable area. Homes with a better location always appreciate quicker and higher than those with an inferior location. Your NET WORTH continues to grow as you make each payment since a portion of that payment is applied against the principal.
- Pride in ownership: There is nothing that makes a person more proud than to finally own their own home. Home ownership is something that we all strive for and our friends and peers often judge us by our homes. Owning your own home gives you a sense of stability and helps you feel that you are part of the community.
- More security: If you become temporarily unemployed, your lending institution will try to work with you during the time it takes for you to get a new job. Your landlord may not be as accommodating.
- Easier to arrange loans: If you require short term loans for investments, or your Retirement savings plan, lending institutions are much quicker to grant the loan since you have already demonstrated your ability and desire to make your payments.
- Tax free gains: Increase in the value of your principal residence is one of the only remaining tax free means to increase your net worth. In most cases, the gain on your principal residence is completely tax free.
- No more rent increases: Once you buy your home, you will never be faced with another rent increase, since the purchase price is fixed. When you take a long term mortgage your payments can be completely fixed for a time period that suits you.
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