The Benefits Of Home Ownership

Posted October 23, 2010 – 5:52 am in: Mortgages
     

Owning your own house is part of the American dream and there are many reasons why you would want to own your own home. From the increase in value to the tax benefits, there are many reasons why owning a house is better than renting.

Even in today’s market, home ownership is a fantastic idea. There are several benefits to homeownership including tax deductions, increase in home value, owning an asset and a place to call your own.

Tax Deductions

Many homeowners have the power to write off their home on their tax returns. From the interest paid to the property taxes paid, homeowners can itemize these deductions. Talk with a tax preparer for more information on the benefits of a owning a property. These tax benefits can truly make home ownership cheaper than renting. For renters, there are no tax benefits.

Rise in Value

Yes house values have fallen over the last few years, but owning a house over the long term will commonly see an increase to the value of the home. Owning a home should be looked as a long term investment. Over time, the value of the home will increase. There is an old saying, “Own your assets and rent your liabilities.” Since a home is considered an asset (increases in value), home ownership can increase your wealth. Several millionaires use real estate as a way to increase wealth, since houses over time increase in value.

Owning Assets

It is important to grow your assets over time. From savings accounts to retirement accounts, you want to place your money in areas where you will see a return. One of the best ways to do so is buying a home. Real estate is a great way to invest for your future, plus you get an additional benefit of having a place to call your own! Plus, with interest rates low on several home loans, now is a fantastic time to purchase a new house and save money. With renting a house, this is considered a liability, since your value in renting never increases. Once you are done with renting the home, you have nothing to show.

Home Sweet Home

There is nothing more satisfying than having a place to call your home and you own it! When you rent, you are helping your landlord increase their wealth, not yours. By being a home owner, you are increasing wealth for yourself.

Many first time home buyers fear the unknown of owning a property, so it is crucial to gather all the information you can. Just like an investment, accumulate as much information so you are an informed buyer. You want to find a place that you can call home and feel comfortable with you investment.

Owning a home is not for everyone, but for those people that are ready to live the American dream, buying a property is an exciting time.

David White is a Sr. Mortgage Consultant who helps his clients with home loans. David has over 12 years experience with Dallas home loans.

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