A10F03B49704A9555CB18D6BD506641C

5 Reasons Home Ownership Makes Cents

Dated: 11/20/2017

Views: 108

5 Reasons Homeownership Makes ‘Cents’

5 Reasons Homeownership Makes ‘Cents’

The American Dream of homeownership is alive and well. Recent reports show that the US 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 have remained around 4% all 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 US. That number varies throughout the country but ranges from 6% cheaper in San Jose, CA to 57% 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.

Bottom Line

Before you sign another lease, perhaps you should sit with a real estate professional in your area to better understand all your options.

Blog author image

Brittany Eneix

Although I was raised in Northeast Ohio I have lived on the coast for over 9 years. I am a military spouse who has moved from one side of the country to the other and back so I am extremely familiar w....

Latest Blog Posts

How To Decorate For Fall On A Budget

I had fully intended on sharing a great before and after with y’all today, but sometimes life happens.  It looks like I’ve got a case of the sickies to start off the week.  So I’ll

Read More

11 Mortifying Home Buyer Behaviors That Make Real Estate Agents Cringe By Cathie Ericson Aug 3

11 Home Buyer Behaviors That Make Real Estate Agents Cringe | realtor.com® 11 Mortifying Home Buyer Behaviors That Make Real Estate Agents Cringe By Cathie Ericson |

Read More

A Dictionary For Home Buyers

Mortgage Terms Explained, From ARMs to PointsBy Laura Winter | Jan 4, 2016 PeskyMonkey/iStock.comMortgage terms are like most industry terms: confusing as heck if you're not in the

Read More

Top 5 Reasons To Sell This Fall

5 Reasons You Should Sell This Fall!800SHARES63553271372Here are five reasons why listing your home for sale this fall makes sense.1. Demand Is StrongThe latest Buyer Traffic Report from

Read More