Is homeownership part of your American Dream? According to the 2022 Consumer Insights Report from Mynd, the majority of people polled still view it as a key life achievement. There are many reasons for this, but here we will explore just three of the most important ones: the financial benefits, the non-financial benefits, and what it means for you. So if you’re thinking about buying a home this year, read on to get started!
The Financial Benefits of Owning a Home
There are many financial benefits to owning a home. For one, it’s a great investment. The average home price has increased by 4.3% annually over the past 50 years, outpacing inflation. This means that your home is likely to increase in value over time, providing you with equity that you can tap into later on down the road.
In addition, owning a home can also help you save money on your taxes. The mortgage interest deduction allows you to deduct the interest you pay on your mortgage from your taxable income, which can lead to significant savings come tax time. Lastly, as a homeowner, you’ll also have the peace of mind knowing that you have a stable place to live that you can call your own.
While the financial benefits of owning a home are certainly appealing, there are also non-financial benefits to consider as well. For instance, homeownership can provide you with a sense of stability and security that renting simply can’t match. When you own your home, you’re in control of your living situation and can make changes to your home as you see fit. This is in contrast to renting, where you’re at the mercy of your landlord and subject to their rules.
In addition, studies have shown that homeownership can lead to improved health outcomes and increased levels of happiness. One study even found that homeowners were less likely to experience depression than those who rented. So if you’re looking for a way to improve your overall wellbeing, buying a home may be a good option to consider.
Of course, there are also financial benefits to homeownership. For one, you’ll build equity in your home as you make mortgage payments and the value of your home appreciates. You can then use this equity to help finance other major life goals, like starting a business or funding your child’s education.
In addition, owning a home can provide you with valuable tax breaks. The interest you pay on your mortgage is usually tax-deductible, which can save you money come tax time. And if you eventually sell your home, you may be able to take advantage of the capital gains exclusion and keep any profits you make tax-free.
Of course, there are also non-financial benefits to homeownership. For many people, owning a home is a source of pride and stability. It’s a place to raise a family and create lasting memories. And unlike renting, you’ll have the freedom to make changes to your home to better suit your needs and taste.
So what does all this mean for you? If you’re considering buying a home this year, it’s important to weigh both the financial and non-financial benefits of ownership. Homeownership is a big decision, but it can be a rewarding one.
If you’re ready to start the journey toward homeownership, we’re here to help. Contact us today to get started.