5 Financial Reasons to Own a Home
As professional mortgage lenders we know owning a house not only brings a sense of ownership but social & financial security as well. If you’ve been thinking about buying your own property and need a little more push, here are the 5 financial reasons to own a home.
- You reap amazing tax benefits
The first and foremost advantage of owning a home is the substantial tax benefits you will be allowed to enjoy. As a homeowner, you can deduct mortgage interest and property taxes from your income giving you a lot of savings. Furthermore, as a homeowner, you also enjoy the capital gains tax advantage if you choose to sell the property for the appreciated gain at a later stage. Selling your primary home provides a tax exemption up to $250,000 ($500,000 for married couples) if the owners have lived in the home for two of the previous five years.
- The advantage of value appreciation
If your financial goal is to accumulate long-term wealth, owning a home is one of the best options to go for. In fact, seasoned property investors use the investment in property as an opportunity to generate wealth by leveraging investment property loans. Leverage is a smart tactic that is helpful in using the equity generated by the appreciated value of an existing owned property to secure a loan or purchase for a new one.
- Help in building equity
One of the advantages of owning a home is that the home value tends to go up over a period of time and will help you build home equity. Not only does it give you a certain sense of freedom & safety, it also allows you to consider financial tools such as using your home equity in a reverse mortgage. The amount you pay towards the principal on the mortgage builds your home equity over a period of time along with an increase in the overall value of the house.
- Owning a home provides stability
Financial and social stability are a few of the major aspirations of Americans. Owning a home gives a sense of ownership, pride, and stability to an individual. Also, as a homeowner you tend to feel more attached to the community.
- Owning a house is a hedge against inflation
Considering the recent property market trends, housing costs and rent, in general, go up at or higher than the rate of inflation, providing attractive benefits to homeowners. Purchasing and locking into a fixed rate mortgage insulates you from these trends and assures that your payment, excluding taxes and insurance, never changes.