The American Dream of homeownership is alive and well. Recentreportsshow 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 thetop 5 financial reasonsyou should own your own home.
Homeownership is a form offorced savings– Paying your mortgage each month allows you tobuild equityin 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 providestax savings– One way tosave on taxesis 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 tolock 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 ischeaperthan renting– According to the latestreportfromTrulia, it is now37.4% less expensiveto buy a home of your own than to rent in the US. 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 youlive 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.
Before you sign another lease, perhaps you should sit with a real estate professional in your area to better understand all your options.
Author:Steve Lewey Phone: 336-317-4100 Dated: November 9th 2017 Views: 36 About Steve: ...
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