So you’re thinking about buying a home?

Homeownership has long been considered a rite of passage and a symbol of financial stability. The “American Dream” if you will. There are many benefits to owning a home, as opposed to renting one. In this blog post, we will discuss seven of the most significant benefits of home ownership.

EQUITY

1. One of the biggest benefits of home ownership is the ability to build equity in the property. As you make mortgage payments, you are paying down the principal of the loan and building equity in the property. This equity can be used as collateral for future loans, or it can be accessed through a home equity loan or line of credit. This is a great strategy if you plan to accumulate rental properties and a strategy Cody and I use to snowball our portfolio (more on that in a different article).

TAX BENEFITS

        2. Owning a home also comes with certain tax benefits. The interest paid on a mortgage is a tax write off, which can result in significant savings on your annual tax bill.  Additionally, property taxes are also tax-deductible.

FORCED SAVINGS

        3.  Another benefit of home ownership is that it can act as a forced savings plan. Each month, some of your mortgage payment goes towards paying down the principal of the loan, which is like money being saved in the form of equity.

STABILITY

          4. Homeownership provides a sense of stability and security. Renters are at the mercy of landlords and can be forced to move at the end of a lease. They’re also subject to rent increases, which we have been seeing a lot of lately. Homeowners have the security of knowing that they will have a place to live for as long as they wish, as long as they can make their mortgage payments.

PRIDE OF OWNERSHIP

          5. Homeownership also provides a sense of pride and accomplishment. When you own your home, you can decorate and make changes as you see fit. You can take pride in the fact that you have a place of your own.

APPRECIATION

          6. Another benefit of homeownership is the potential for appreciation of the property. Real estate values typically increase over time, which can result in significant financial gain for the homeowner. Particularly if you plan to stick around for a while!

COMMUNITY

         7. Homeownership can also provide a sense of community. When you own a home, you are more likely to be invested in your community and to get involved in local activities and events. Some of  our best friends are the neighbors we live next to.

In summary, homeownership has many benefits over renting. Now I know we may be a bit biased since we eat and sleep real estate, but home ownership isn’t for everyone… If you have to move around frequently and don’t want to keep every house you buy for longer than 5 years, we wouldn’t recommend buying under those circumstances. Additionally, if you like having the comfort of knowing you’ll never be in charge of fixing anything, Home ownership might not be for you.

If you’ve been kicking around the idea of buying yourself a home, please feel free to reach out to either of us. We can discuss the pros and cons and find out whether home ownership is a good idea for you!

-Cody & Jos-