The Many Advantages to Owning a Home

For several years now, many have been wondering if the real estate market is hitting a bubble. We’ve maintained the stance that market timing is never a great strategy, as it can bite you where it hurts! Instead, we always recommend making decisions based on your family and financial situation at the time, taking a short & long-term view in helping make the best buying/selling decisions. With that being said, we wanted to list some benefits to home ownership for your consideration…

Home ownership was once considered the American Dream; it was the key to financial security & success. Owning a home, along with having a pension and Social Security, meant you were set for life. Things have changed a bit. However, owning a home still carries tremendous benefits versus renting.
 
Home Ownership Advantages

• The homeowner’s monthly payment is fixed, while renters can experience increases in their rent payments. This is especially critical in retirement, when you may have a lower, fixed amount of income.
• Homeowners can eventually get rid of their mortgage payment, whereas renters pay rent as long as they live in the home (Note: homeowners will still always have property taxes, insurance, and HOA dues, as applicable).
• Homeowners build equity with each monthly principal payment, while renters keep no part of their rent payments.
• Homeowners can possibly deduct annual mortgage interest & property taxes on their income tax return. Renters generally receive no tax deduction for their payments.
• Home value increases directly benefit homeowners. Renters see no gains.
• Homeowners have security in knowing they won’t be forced to move. Renters can be unexpectedly displaced.
• Homeowners have more freedom to renovate & decorate. Renters are often limited in the changes they can make to their landlord’s home.

 
The above list doesn’t mean owning a home is always a superior option to renting. Each situation must be looked at uniquely.
 
We’ve been providing our clients with home loans for over 20 years. Should you have questions as it pertains to your specific situation regarding buying, selling, and refinancing…feel free to contact us…we’re happy to help!