It is the tale as old as time, Homeownership is the best way to gain wealth and secure your future. Here are five primary ways homeowners can secure the wealth and equity in their home
First and foremost, homes typically appreciate in value. While there is no guarantee that the home you buy will appreciate in value, there’s a good chance it will. According to the Federal Finance Agency’s House Price Index, home values have appreciated an average of 3.33% each year since 1991. When buying a home this appreciation builds even more equity, which in turn increases your net worth.
Homeownership can create forced savings. Putting money aside to save each month, especially in today’s economy, is very difficult. However, every financial expert would vouch that having a savings cushion is one of the most important things for financial freedom. By Being a homeowner, paying a mortgage acts as that forced savings. Even though it may not seem like that, while paying on a 30 year mortgage, however, in paying down your principal you are building equity.
Can you say tax benefits? Owning a home is a huge investment. As a homeowner you are entitled to tax benefits. You have the ability to deduct your mortgage interest and property tax payments from your federal taxable income. This then gives you the availability to more of your funds and hard-earned money come tax time. As always, consult with a tax advisor, each situation is different.
Same ole’ payment each and every time. As a homeowner you have a fixed housing payment. If you were renting you could be subject to fluctuating rental prices, which as a trend, have seem to go up each and every year. Mortgages, can be fixed which provides a stable housing payment that will not go up over the life of your loan. This in turn will allow you to put your money toward investments, savings, or other things that can help build your financial freedom.
Money, money, money. Homeowners typically have a greater net worth. According to the Federal Reserve’s latest Survey of Consumer Finances, homeowners have 36 more net worth than renters.
Gaining financial freedom is always the end game. Homeownership is one of the greatest ways you are able to secure that wealth and gain that equity.
Own your own home, today!
This comparison clearly shows the power of homeownership for building wealth.
If you want to gain financial freedom, homeownership is one of the smartest things you can do to help you build wealth for the long-term.