There are significant advantages to owning your own home, yet many people continue to rent. Financial benefit is the biggest reason why home-ownership continues to be part of the longstanding American dream, but owning a home also has social benefits, including feeling part of a community, wanting to invest in its success, and more.
Here are the top five financial benefits of owning a home, as reported by the real estate experts at Keeping Current Matters:
- Home-ownership is a form of forced savings. Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.
- Home-ownership provides tax savings in the form of mortgage interest deductibles and more.
- Home-ownership allows you to lock in your monthly housing costs – for many years to come – while rent costs can escalate each year.
- In many cases, buying is less expensive than renting. The average rental in Zionsville, IN is $2300 per month. If you pay more than $1700 per month in rent, I can send you three houses you can afford to buy right now.
- No other investment lets you live inside of it!
The Federal Reserve conducts its Survey of Consumer Finances every three years; the most recent study showed a homeowner’s net worth is 44 times great than that of a renter. A family that purchased a median-priced home at the start of 2019, would build more than $37,750 in equity over the next five years through projected price appreciation alone.
Some argue that renting eliminates the cost of taxes and home repairs, but every renter should realize that all the expenses a landlord is likely in incur are already built into the rent you are paying – along with a profit margin.
Bottom line? Owning has many social and financial benefits that cannot be achieved by renting. Let’s connect to determine if buying a home is right for you.