The American Dream of homeownership is alive and well. Recent reports show that the U.S Homeownership rate has risen in significant and monumental ways. The personal reasons to own differ from each buyer, but
there are many basic similarities. In this quick post I 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 give that freedom and benefit to your landlord. There is no equity in renting.
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 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 house cost for the next 5, 15, or 30 years. 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: The results of a 2018 Rental Affordability Study from ATTOM show that buying a median-priced home is more affordable than renting a three-bedroom property in 54% of US Counties.
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 you r investment is gaining value while providing you a safe place to live.
Bottom Line: Before you sign another lease, let's get together to help you better understand all your options!