Owning A Home Is A Powerful Financial Decision and Here are 3
housing market, there are clear financial benefits to owning a home:
increasing equity, the chance to build your net worth, and appreciating home
values, just to name a few. If you’re a renter, it’s never too early to think
about how homeownership can propel you toward a stronger future. Here’s a dive
into three often-overlooked financial benefits of homeownership and how
preparing for them now can steer you in the direction of greater financial
security and savings.
You Won’t Always Have a Monthly Housing Payment
finance advisor Dave Ramsey explains: Every payment brings you closer to owning the house. When you pay
your rent, that money is spent. Gone. Bye. Not returning. But when you pay your
mortgage, you work toward full ownership.
a homeowner, you can eventually eliminate the monthly payment you make on your
house. That’s a huge win and a big factor in how homeownership can drive
stability and savings in your life. As soon as you buy a home, your monthly
housing costs begin to work for you as forced savings in the form of equity. When you build equity and grow your net worth, you
can continue to reinvest those savings into your future, maybe even by buying
that next dream home. The possibilities are truly endless.
2. Homeownership Is a Tax Break
One thing people who have never
owned a home don’t always think about are the tax advantages of homeownership.
The same article states: You have tax advantages. Many of the costs of owning a home—like
property taxes—are tax-deductible. And if you’re paying off a mortgage, you’ll
get to count your mortgage interest as a deduction when you file your tax
Whether you’re living in your
first home or your fifth, it’s a huge financial advantage to have some tax
relief tied to the interest you pay each year. It’s one thing you definitely
don’t get when you’re renting. Be sure to work with a tax professional to get
the best possible benefits on your annual return.
3. Monthly Housing Costs Are
A third benefit is a fact that monthly costs start to become more
predictable with homeownership, something that doesn’t happen if you’re
renting. Ramsey also notes: Rent rates will go up. Even
if you found a killer deal in a hot area, inflation, competition, and rising
property values will cause your rent to go up year after year.
With a mortgage, you can keep your monthly housing costs relatively
steady and predictable. Your monthly costs are most likely based on a
fixed-rate mortgage, which allows you to budget your finances over a longer
period of time. Rental prices have been skyrocketing since 2012, and
with today’s low mortgage rates,
it’s a great time to get more for your money when purchasing a home. If you
want to lock-in your monthly payment at a low rate and have a solid understanding
of what you’re going to spend in your mortgage payment each month, buying a
home may be your best bet.
So, if you’re ready to start feeling the benefits of stability,
savings, and predictability that come with owning a home, reach out to a local
real estate professional to determine if buying sooner rather than later is
right for you.