Recently, Freddie Macreported on the benefits of home ownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”
ONE: Home ownership can help you build equity over time.
TWO: Your monthly payments will remain stable.
THREE: You may have some tax benefits.
FOUR: You can take pride in ownership.
FIVE: Home ownership improves your community.
Let’s expand on each of Freddie Mac’s points:
Home Ownership can help you build equity over time.
Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).
In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun reported that now the net worth gap is 45 times greater.
Your monthly payments will remain stable.
When you purchase a home with a fixed rate mortgage, the majority of the payment (principal and interest) remain constant. On the other hand, rents continue to skyrocket. Your housing expense is much more stable if you own instead of rent.
You may have some tax benefits.
According to the Tax Policy Center’s Briefing Book-“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to home ownership.
Here are four items from the Briefing Book:
Mortgage Interest Deduction
Property Tax Deduction
Profits from Home Sale
You can take pride in ownership.
Most surveys show that a major factor in purchasing a home is the freedom you have to design the home the way you want. From paint colors to yard accessories, you don’t need a landlord’s permission to make the house feel like a home.
“Home ownership does create social capital and provide residents with a platform from which to connect and interact with neighbors…Owning a home means owning part of a neighborhood, and a homeowner’s feelings of commitment to the home can arouse feelings of commitment to the neighborhood, which, in turn, can produce interactions with neighbors.”
There are many benefits to home ownership. That is why it is still a critical piece of the American Dream.
Author:Tyler Ford Phone: 520-907-5720 Dated: February 4th 2018 Views: 800 About Tyler: I’m Tyler Ford, and I’d like to tell you how my experience in real estate will work for you.
Hi. I’m Robin Willis. I started working in real estate in 2005, with a previous career in the mortgage industry. My objective is to serve you in a way that adds real value to your life. This means taking the extra time to make sure you are understood and that we are meeting your goals when it comes to buying or selling real estate. This also means giving you all the information you need to make important decisions but never taking that decision-making power from you. With me you can eXpect Professionalism and will eXperience Success. Yes, that's a play on my company name. I like to have fun, too!
I have two designations that I will briefly describe below:
CDPE – Certified Distressed Property Expert – I earned this designation by taking classes that explored the short sale process in detail. In addition to earning my designation, I also specialized in short sales from 2007 – 2013 and still work on them as they come my way. This education and experience has allowed me to have the expertise needed to guide my clients through this very emotional process and has resulted in very positive outcomes for my clients.
SRES – Seniors Real Estate Specialist – I earned this designation by taking classes that explore topics important to mature adults (50+) as they go through changing life stages that require different housing needs. These classes were an extension to the knowledge I had already gained working with this age group and I enjoyed having more resources to assist as homebuyers go through down-sizing (or sometimes up-sizing to allow room for grandchildren), changing communities as they leave child-rearing days behind, purchasing a second or vacation home, all the way through possible assisted living or reverse mortgage choices.
I have a lot of happy clients who are willing to speak to potential clients about their experience with me. Please let me know if you’d like some references.