Owning your own home is part of the American dream and there are many reasons why you would want to own your own property. From the tax benefits to the increase in value, there are lots of reasons why owning a home is better than leasing.
Even in today’s market, home ownership is a fantastic idea. There are many benefits to homeownership including tax write offs, 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 property 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 tax benefits of a owning a property. These tax benefits can actually make owning a home cheaper than renting. For renters, there are no tax benefits.
Rise in Value
Yes home values have decreased over the past couple of years, but owning a home over the long term will commonly see an rise to the value of the property. Owning a home should be looked as a long term investment. Over time, the value of the home will rise. There is an old saying, “Own your assets and rent your liabilities.” Since a house is considered an asset (increases in value), owning a home can help you increase your wealth. Many millionaires use real estate as a way to gain wealth, since properties 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 purchasing a property. Real estate is a great way to invest for your future, plus you get an added benefit of having a place to call your own! Plus, with interest rates low on many home loans, now is a great time to buy a new home 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 comforting 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 home, so it is crucial to gather all the information you can. Just like an investment, compile as much information so you are an educated buyer. You want to find a place that you can call home and feel comfortable with you purchase.
Homeownership is not for everyone, but for those people that are ready to live the American dream, purchasing a property is an exciting time.
David White is a Sr. Mortgage Specialist who helps his clients with home loans. David has over 12 years experience with Dallas home loans.
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