Owning a home is the ultimate dream for many people. It is considered an important milestone of adulthood. A home is a keystone of wealth and a cornerstone of a strong community. Being a homeowner adds a sense of pride and affluence while gaining respect in society. More Kenyans are embracing home ownership in a nation with 7 million homeowners. But is buying a house a good investment? This article answers the question, Is buying a house a good investment?

Why Buying a House is a Good Investment

Buying a house is a great life achievement and a key inspiration to many. The 2019 Kenya Population and Housing Census Report (KPHC) findings show that 61.3% of Kenyans own a home. This is in contrast to 38.7% who are still renting. Despite most of those living in urban areas being tenants compared to rural areas, many Kenyans continue to invest in home ownership more than ever before. Homeownership is one of the most significant long-term investments. A home gives you financial security and builds wealth through equity over time. Big a decision it is, it’s normal if you still have reservations on whether to invest in a home or not. Do you have mixed feelings about buying a house at the moment? RevoHouse Limited has compiled a list of 7 valid reasons why you should consider owning a home.

Sense of Pride and Satisfaction in Ownership

One of the top reasons many purchase their homes is to enjoy ownership. You can paint the walls whatever color or pattern and attach permanent fixtures. You can decorate your room to your personal taste. You are free to do whatever you please with the house because it’s yours! Such changes are often impossible when you are renting as it is another person’s property. Owning a family home gives you and your family a sense of stability and security. It’s a form of investing in your future, equity that will grow with you as you continue to live in it.

Appreciation

Aside from a great sense of pride, a home purchase is an asset! Generally, land appreciates with time. The value of land today is different from what it will be in the next five years. House prices tend to rise over time. Therefore, you will reap huge profits if you decide to sell your home after some years. This makes buying a house an attractive long-term investment. It is no wonder how lucrative Kenya’s current real estate trends have become. Buying a home is one of the best investments you can make today. This is because it secures your capital in a safe, long-term investment where it’s likely to grow. This factor alone distinguishes why buying a house is a good investment.

Mortgage Interest Deductions which in turn build equity

You can secure a mortgage for your home. In this case, most of your monthly income goes towards paying back the interest. With time, the increasing amount is used to reduce the mortgage balance. Why, then, is buying a house a good investment? With the payments being made, you are able to reduce the principal. This increases your share – or equity- in your home’s value. As your home appreciates in value, the equity builds even faster. Building equity in your home is vital as it helps you plan for retirement and achieve other goals. This explains why buying a house is a good investment.

Property Tax Deduction

Is buying a home a good investment? Is it worth it? Homeownership is a tax shelter, and the tax rates highly favor homeowners. First-time homeowners with current home loans get the most significant tax benefit. This is because the newer the mortgage, the higher the amount of interest paid. This translates to greater tax breaks. Additionally, as long as your mortgage balance is less than the price of your home, your mortgage interest is deducted when you make a tax return. Real estate taxes can be deducted, which adds to the perks of being a homeowner. Compared to tenants, being a homeowner is actually cheaper. This is due to the mortgage and tax deductions you enjoy as a house owner. The costs are also more predictable and stable than renting. This is because they are based on a fixed-rate mortgage.

Peace of Mind In Owning Your Own Home

No more worrying about hectic caretakers or landlords! No more rent issues on when it’s due or when it increases! The entire house is yours. And so is the lush green grass in your compound that you don’t share with anyone else but your loved ones. Having your own home gives you bliss and peace of mind. You can live in your home for as long as you like, with the freedom to do whatever you want with your assets. You are your caretaker and landlord!

Is Buying a Home a Good Investment?

It is priceless! There’s nothing more satisfying than having a place you can call your own. It ceases to be any exquisite house in a serene environment. It becomes a Home, which is the most valuable asset a man can ever own. As a real estate investor, it is essential to carefully research before buying a property. Enlist a trusted real estate developer such as RevoHouse Limited. This eases the burden of house hunting while reassuring value for your hard-earned money. Are you looking for a modern home away from the hustle and bustle of Kenya’s capital city? In a fast-rising metropolis town with a secure neighborhood? Karibu Revo! We have specially designed 3-bedroom, ensuite homes in a gated community. Contact us for a free site viewing today.