4 Benefits of Homeownership For Everyone
Hello, current and future homeowners! Buying a home can feel fiscally and emotionally daunting, but after making well-informed decisions, the investment into homeownership comes with lots of amazing financial and personal pay-offs.
Between the tax deduction possibilities and the benefits of building home equity, the long-term financial benefits of homeownership often include huge savings and potential for profit!
What does it mean to build wealth through homeownership? It means a couple things. First, your home’s value will likely increase over time, so as you continue to pay off your mortgage, you’re increasing your equity.
What about the whole renting vs. buying debate? With the right price point and time for you, you will save money over time by paying off your mortgage instead of sending payments to a landlord. This is because of interest which decreases over time, ultimately lowering below what you would have been paying in rent.
Let’s take a slightly deeper dive into the tax savings you can get through homeownership.
Mortgage interest deduction is likely the most well-known savings opportunity. It means any interest on your mortgage is tax-deductible! Depending on where you live, a property tax deduction is also possible (learn more).
Once you’re ready to sell, you may be eligible for further tax exemptions thanks to the capital gains tax benefit.
More wealth-building quick links and resources you should check out:
Communities are made of people. When you buy a home, you are joining a community and committing to its long-term well-being. As a homeowner, connect with your neighbors, community social media groups and local community organizations.
These features positively contribute to your individual home’s value and also create spaces for you to get directly involved. From park districts to community gardens, learn how you can get involved in your community and influence it for the better.
Also, be a good citizen, and don’t forget to register to vote in your area!
Home is where you make it, so why not make your home something you own?
While you don’t have to go HGTV-crazy with home improvements, remodeling projects and redecorating can be a fun way to turn your space into your sanctuary. Unlike renters who often have rules against painting or making significant changes to their units, your home is YOURS to update and personalize.
Also, think of the emotional stability you will gain and the stress you will save by not having to relocate or hunt for new apartments to lease.
If you value financial independence, this is a great project to become confident in your own wealth-building habits. Set up separate funds for emergency savings, fun remodeling projects, future furniture purchases and beyond. Homeownership is an amazing adventure in personal growth.