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.
-
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.
-
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.
-
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.
-
Buying a home is cheaper than renting – According to the latest report from Trulia, it is not 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% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.
-
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, let’s get together to help you better understand all your options.
To view the original article, please visit Keeping Current Matters.
Why Today’s Foreclosure Numbers Are Nothing Like 2008
While foreclosures are climbing, it’s clear foreclosure activity now is nothing like it was during the housing crisis.
What Are the Experts Saying About the Spring Housing Market?
Buyers are going to see more competition than they might expect because there are not many homes on the market.
The Power of Pre-Approval
Pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow.
What’s the Difference Between a Home Inspection and an Appraisal?
Your trusted real estate professional will help you navigate both the inspection as well as any issues that arise during the buying process.
5 Reasons Millennials Are Buying Homes
The top reasons include building equity, a change in life stage, wanting stability, rising home values, and wanting to make somewhere truly their own.
Think Twice Before Waiting for Lower Home Prices
The best way to understand what home values are doing is to work with a local real estate agent who can give you the latest insights.
The Big Advantage If You Sell This Spring
Thinking about selling your house? If you’ve been waiting for the right time, it could be now while the supply of homes for sale is so low.
Homebuyer Activity Shows Signs of Warming Up for Spring
The recent uptick in mortgage applications, and the decline in mortgage rates, is good news for sellers!
Trying To Buy a Home? Hang in There.
As we move into the spring buying season, even though we are still in a sellers’ market, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.
Two Reasons You Should Sell Your House
Wondering if you should sell your house this year? As you make your decision, think about what’s motivating you to consider moving and let’s connect today!