Since the day humans decided to pick up sticks and build a permanent hut, homeownership has been sought after and dreamed about, and with good reason. Still, the past decade has seen many people questioning whether the American dream of white picket fences and room for a dog is the best fit for their lifestyle and finances. Listen, homeownership isn’t for everyone, but if you’re not backpacking the world year round and living out of hostels, chances are homeownership is worthy of your consideration. So let’s take a look at some of the benefits of owning a home.
The buck starts here. Homeownership builds wealth over time. Maybe I’m blind, but I’m having a difficult time imagining you slapping away money. We know you like money, and the more the merrier, right? Paying your mortgage is a form of equity. Any time you’re reducing the money you owe on your house, you’re increasing the equity of your home. Therefore, paying your mortgage equates to a form of savings– one you can’t blow every time you feel the urge to party in Vegas. Remember that your mortgage payment is money you would be spending on rent anyway, so you may as well get a return on investment. Your landlord can’t do that. Besides, owning a home means you can be the landlord.
Tax season never looked so good. Would you like to be happier and richer when tax season rolls around? Well, get this. Property tax and mortgage interest payments may be deductible from your federal and some state taxes. When you buy a home, the bulk of your payments initially go toward the interest. This means that the early years of homeownership can amount to a lot more money in your pocket.
Stability is a sexy word. Each time your lease is coming to an end, you’ve got to hope your landlord doesn’t decide to increase the rent. Having a mortgage means you know exactly what your monthly payments are going to be.
Owning a home also means a possibility of deeper ties with your community. Your tax dollars and vote have a direct impact on your local government, organizations and schools. And most importantly, homeownership creates more stable family lives and communities.
Money saved is money earned. Outside of the initial costs of purchasing a home, down payment and closing costs, owning a home works out to be cheaper than renting in most U.S. markets.
Have it your way. Money aside, who doesn’t love to walk into a home that they’re paying for and have things exactly as they like them? When you own your home, you open up a world of opportunities to create an environment most suited to your personality and lifestyle. Want to paint the front door, plant a tree, knock down a wall, choose your own paint colors? It’s up to you. Owning a home allows you to put your money where your style is.
Who said that? You and your spouse going through a rough patch? Maybe, now, Becky next door won’t know all about it. Owning a home often means increased privacy. Whether that means concrete and stucco for increased sound barriers or adding a fence for uncensored fun times. Homeownership means having more control over your private life.
That’s one big nest egg. The retirement years should be a time of security and enjoyment, not one or the other. Whether you’d like to cash in your house for something smaller and more manageable, or rent it out for the extra income, having a home can add security and flexibility to your later years.