According to the National Association of Realtors, there are 7 compelling reasons to own a home.
Reason 1. - Tax benefits. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home. Rent payments are not deductible.
Number 2. Appreciation. Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®. According to statista.com, in 2021 home prices increased by more than 18% that single year - the highest jump on record. In addition, the number of U.S. households is expected to rise 10 to 15 percent over the next decade, creating continued high demand for housing. Appreciation is FREE MONEY.
Number 3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home. Besides. It's almost always cheaper to buy than to rent! So, unless you have money to burn, buy, don't rent!
NUMBER 4. Savings. Building equity in your home is a ready-made savings account. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax. Meanwhile, if you stay in your home and need a new roof or HVAC or money for college, you can borrow it from the equity you've built up and usually at a much lower rate than an unsecured personal loan.
NUMBER 5. Predictability. Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may decline as you own the home longer. And, eventually you’ll have no house payment at all! However, keep in mind that property taxes and insurance costs might increase, and small adjustments will be made to your payment and, after it’s paid off, you’ll still want to put money back every month to pay your taxes and insurance because it won’t be escrowed for you anymore.
NUMBER 6. Freedom. The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle. Take down a wall, hammer a nail into the wall, move the wall... all without the landlord's permission!
NUMBER 7. Stability. Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. Roots...
