5 Benefits Of Home Ownership
Buy A Home – It’s A Good Decision
Okay, so you need to convince yourself (or maybe a partner) that it’s time to buy a home. Here is the ammo that you need – 5 bullets for why owning a home is beneficial.
We know that buying a home is a big decision and you’ve heard some of these reasons before from us, but we want to be sure you have your ducks lined up so that you won’t wander away from the right decision.
This is from Harvard’s Joint Center for Housing Studies by Eric S. Belsky.
The Dream Lives On:
The Future of Homeownership in America
-
Housing is a leveraged investment.
Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.
-
You’re paying for housing – yours or someone elses.
Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.
Do you want to pay for your own housing or pay for your landlords housing?
-
Housing is your piggy bank.
Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.
-
Tax benefits.
Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.
-
Owning a home is a hedge against inflation.
Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.
In conclusion:
Americans yearn for homeownership. Most think it makes more financial sense than renting and plan to buy again or buy for the first time at some point in the future. They associate homeownership with greater control over their lives, less insecurity of tenure, and better communities.
If you still need help weighing this decision out, don’t hesitate to contact Skyrise Real Estate Group to discuss your options with one of our professionals.
