When it comes to investing in real estate, many people are hesitant to enter the market. But one of the best ways to start is with an owner-occupied property. That’s because these properties offer a number of advantages that other types of investments don’t have.
Tax Benefits
One of the main benefits of investing in an owner-occupied property is that you are able to take advantage of tax deductions. You can write off your mortgage interest payments, property taxes, and other related expenses on your taxes each year. This can help reduce your overall tax liability significantly. Additionally, when you live in the home, you may be eligible for certain credits or deductions that would not apply if the home was not occupied.
Equity Value
Another benefit of owning and living in a home is that it gives you equity over time. Every month, as you make your mortgage payments, a portion of those funds goes toward reducing your principal loan balance rather than just paying interest charges on the loan balance owed. As this happens, the amount of equity you have in the home increases. This can be a great way to build wealth over time, as your equity can be used as collateral for other loans or investments.
Greater Control
Finally, owning your own property provides more control over your investment decisions. If you choose to rent out part of the property or sell it down the line, those are decisions that only you can make and no one else has any influence over them. Additionally, if you want to make improvements to the home, such as adding an extra bedroom or bathroom, you don’t have to worry about getting permission from anyone other than yourself.
These are just some of the many reasons why owner-occupied properties make good investments. As you can see, there are numerous benefits to owning and living in your own home. If you’re thinking of investing in real estate, consider the advantages of an owner-occupied property before making your decision. Contact Lode Capital today to get the funding you need to invest in owner-occupied properties.