The American dream of being a homeowner is alive and well. In fact, 74 percent of Americans regard homeownership as a marker of economic success, ranking it ahead of the ability to retire (66 percent), being successful in one’s professional life (60 percent), and even having a family (40 percent).
Homeownership Benefits
Buying a home is usually the biggest purchase most people will make in their lifetime, and although affordability has been the biggest barrier for homebuyers over the past few years, there is no getting around that homeownership is still a great long-term investment.
Tax benefits
In order to receive homeowner tax benefits, you must itemize your tax return and these benefits depend on your filing status and income. There are many tax breaks that the IRS offers which can offset your homeowner costs—many states will actually match the federal tax breaks.
Home appreciation
According to the National Association of Realtors® (NAR), home values are still up 7 percent cumulatively over the past ten years, and it’s expected that there will be a 10 to 15 percent increase in the number of new households in the US over the next ten years. As a result, the demand for housing will remain high.
Build equity
Each time you make a mortgage payment, the more equity you will add to your home. And when you’re ready to sell, you’ll be able to put that equity into savings or toward the purchase of your next home. Unlike rent, owning a home means more money in your pocket over time.
Stability
Purchasing a home helps you to build long-lasting relationships with your neighbors, become part of a community, and provide ongoing stability for you and your family.
Predictability
Having a fixed-rate mortgage provides comfort in knowing that your monthly payment will remain the same over the life of the loan, whereas rent costs can go up yearly and may eventually exceed your budget.
Autonomy
When owning your own home, you have freedom of expression to do what you want. And with this freedom comes flexibility, security, and control. If you live in a community with an HOA, you might experience some restrictions but typically far less than you would while renting.
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