Homeownership in the United States comes with great benefits. To some people, owning a home is the actualization of the American dream. In addition, by purchasing a home, you are putting down roots and creating a community. Ask your agent about our guide to buying your first home in today’s market.

1. Financial Benefits to Homeownership

Besides providing a roof over your head, buying a home has significant financial benefits. Once the down payment is made, building equity in your home can help you create generational wealth. Except for the rare occasion when a home loses value, most residential properties gain value over time. As you pay down your mortgage debt with monthly payments, the value of the home rises. In about 10 years or so, the value of your home has risen, and that down payment you made has turned into a healthy sum of money. If you had decided to rent for those 10 years, the only person making money would be the landlord.

Over the same 10-year period, you have made a monthly payment that has not changed. It is common for a lease or rent payment to rise over time, making it harder to budget your expenses over the long term.

2. Tax Benefits to Homeownership

Homeowners who itemize their tax filings can deduct the mortgage interest they pay from their taxable income. Depending on where you live, the same goes for the property taxes that you pay. In addition, the profit you make when selling your home can be tax-free under certain circumstances. These are widely used tax benefits, which make homeownership more attractive than renting.

There is a little-known term referred to as imputed rent. What this means is that as a homeowner, you are paying rent to yourself. A landlord pays taxes on the rental income they receive. As a homeowner, you do not pay taxes on imputed rent that you pay to yourself.

3. Personal Benefits to Homeownership

Last but certainly not least, are the personal benefits of owning a home. It has been said that buying a home contributes to a sense of accomplishment. Homeowners tend to stay in one place for extended periods and improve their properties. It is also well-known that areas with a higher percentage of homeownership tend to have lower crime rates.

Conclusion

Purchasing a home can be seen as accomplishing the American dream. There are many different benefits to homeownership, from financial to personal. One thing for sure is that owning a home is something most people dream of — and that dream is attainable. Our team of agents can help!