In today’s housing, there are clear financial advantages to owning a home: growing up equality, the opportunity to build yours net worth, and thanking household values, just to name a few. If you are a tenant, it is never too early to consider how homeowning can push you to a stronger future. Here’s a dive into three often overlooked financial benefits of homeownership and how to prepare for them can now lead you to greater financial security and savings.
1. You Won’t Always Have a Monthly Residence Payment
Personal finance advisor Dave Ramsey explains:
“Every payment brings you closer to owning the house. When you pay your rent, that money is spent. Gone. Goodbye. Not returning. But when you pay off your mortgage, you are working towards full ownership. “
As a homeowner, you can finally get rid of the monthly payment you make on your home. That’s a huge win and a big factor in how home ownership can cause stability and savings in your life. As soon as you buy a home, your monthly living expenses start to work for you as forced savings in the form of equality. When you build equity and grow your net worth, you can continue to reinvest those savings into your future, perhaps even by buying that next dream home. The possibilities are truly endless.
2. Homeownership Is A Tax Collection
One thing that people who have never owned a home don’t always think about is the tax benefits of homeownership. The same article says:
“You have tax benefits. Many of the costs of owning a home – such as property taxes – are tax deductible. And if you pay off a mortgage, you will calculate your mortgage interest as a deduction when you file your tax return. “
Whether you live in your first home or your fifth, it’s a huge financial advantage to have some tax relief tied to the interest you pay each year. One thing you certainly don’t get when you rent. Be sure to work with a tax professional to get the best possible benefits on your annual return.
3. Monthly Living Costs Are Predictable
A third advantage is the fact that monthly costs become more predictable with homeownership, something that doesn’t happen if you rent. Ramsey also notes:
“Rental prices will rise. Even if you find a deadly deal in a hot area, inflation, competition and rising home values will cause your rent to grow year after year. “
With a mortgage, you can keep your monthly housing costs relatively stable and predictable. Your monthly costs are most likely based on a fixed-rate mortgage, which allows you to budget your finances for a longer period of time. Rental prices were exploding since 2012, and with today low mortgage rates, it’s a great time to get more for your money by buying a home. If you want to lock in your monthly payment at a low rate and have a solid understanding of what you will spend on your monthly mortgage payment, buying a home may be your best bet.
If you’re ready to start feeling the benefits of stability, savings, and predictability with home ownership, let’s connect to determine if buying sooner than later is right for you.
Content previously posted in Keep Current Things