The American Dream of homeownership is alive and well. Recent reports show that the U.S. homeownership rate has rebounded from recent lows and is headed in the right direction. The personal reasons to own differ for each buyer, but there are many basic similarities.
Today we want to talk about the top 5 financial reasons you should own your own home.
1. Homeownership is a Form of Forced Savings
Paying your mortgage each month allows you to build equity in your home that you can tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college. As a renter, you guarantee that your landlord is the person with that equity.
2. Homeownership Provides Tax Savings
One way to save on taxes is to own your own home. You may be able to deduct your mortgage interest, property taxes, and profits from selling your home, but make sure to always check with your accountant first to find out which tax advantages apply to you in your area.
3. Homeownership Allows You to Lock in Your Monthly Housing Cost
When you purchase your home with a fixed-rate mortgage, you lock in your monthly housing cost for the next 5, 15, or 30 years. Interest rates remained around 4% all last year,
marking some of the lowest rates in history. The value of your home will continue to rise with inflation, but your monthly costs will not.
4. Buying a Home Is Cheaper Than Renting
According to the latest report from Trulia, it is now 37.4% less expensive to buy a home of your own than to rent in the U.S. That number varies throughout the country but ranges from 6.5% cheaper in San Jose, CA to 50.1% cheaper in Detroit, MI.
5. No Other Investment Lets You Live Inside of It
You can choose to invest your money in gold or the stock market, but you will still need somewhere to live. In a home that you own, you can wake up every morning knowing that your investment is gaining value while providing you a safe place to live.
Before you sign another lease, let’s get together to help you better understand all your options.
For more information, please contact the Ternullo Real Estate Team.