The 5 Greatest Benefits Of Homeownership

Dated: 07/13/2017

Views: 46


The 5 Greatest Benefits of Homeownership



The 5 Greatest Benefits of Homeownership | MyKCM


Recently, Freddie Mac reported on the benefits of homeownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”


  1. Homeownership can help you build equity over time.

  2. Your monthly payments will remain stable.

  3. You may have some tax benefits.

  4. You can take pride in ownership.

  5. Homeownership improves your community.


Let’s expand on each of Freddie Mac’s points:

Homeownership can help you build equity over time.


Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).


In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun reported that now the net worth gap is 45 times greater.

Your monthly payments will remain stable.


When you purchase a home with a fixed rate mortgage, the majority of the payment (principle and interest) remain constant. On the other hand, rents continue to skyrocket. Your housing expense is much more stable if you own instead of rent.

You may have some tax benefits.


According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership.


Here are four items from the Briefing Book:

  • Mortgage Interest Deduction

  • Property Tax Deduction

  • Imputed Rent

  • Profits from Home Sale

You can take pride in ownership.


Most surveys show that a major factor in purchasing a home is the freedom you have to design the home the way you want. From paint colors to yard accessories, you don’t need a landlord’s permission to make the house feel like a home.

Homeownership improves your community.


The National Association of Realtors recently released a study titled ‘Social Benefits of Homeownership and Stable Housing.’ The study explained:


“Homeownership does create social capital and provide residents with a platform from which to connect and interact with neighbors…Owning a home means owning part of a neighborhood, and a homeowner’s feelings of commitment to the home can arouse feelings of commitment to the neighborhood, which, in turn, can produce interactions with neighbors.”

Bottom Line


There are many benefits to homeownership. That is why it is still a critical piece of the American Dream.


Source: https://www.mykcm.com/2017/07/13/the-5-greatest-benefits-of-homeownership/


www.RaulAcuna.com

#RaulAcunaRealtor #TeamRaulAcuna #RemaxTime #RealEstate #HomeOwnership #AmericanDream #RentVsBuy #HomeBuyers #HomeOwners 

Blog author image

Raul Acuna - CA BRE #01708572

Raul Acuña - Raul has been in the Real Estate Industry since 2005. Raul began working at an REO brokerage before opening his own REO company in 2010. Raul has a business degree from Cal Poly Pomona, ....

Want to Advertise on this Site?

Latest Blog Posts

4 Reasons To Sell This Spring

Some Highlights: Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available! Housing

Read More

The Number 1 Reason To Sell Now Before Spring

The #1 Reason to Sell Now Before SpringThe price of any item (including residential real estate) is determined by ‘supply and demand.’ If many people are looking to buy an item and the supply of

Read More

What Impact Will The New Tax Code Have On Home Values

What Impact Will the New Tax Code Have on Home Values?Every month, CoreLogic releases its Home Price Insights Report. In that report, they forecast where they believe residential

Read More

Thinking Of Selling Now Is The Perfect Time

Thinking of Selling? Now is the Perfect TimeIt is common knowledge that a great number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes

Read More