The American Dream of homeownership is alive and well. The personal reasons to own differ for each buyer, with many basic similarities.
1.) Housing is typically the one leveraged investment available.
“Homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor.”
2.) You're paying for housing whether you own or rent.
“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”
3.) Owning is usually a form of “forced savings”.
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”
4.) There are substantial tax benefits to owning.
“Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”
5.) Owning is a hedge against inflation.
“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”
I realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially. If you are considering a purchase this year, call/text me so I can help you evaluate your ability to do so.
Want more info about the home buying process. Read my free home buying guide.
Find a home that works for your personal budget. Search www.OnlineHouseHunt.com.
Call/Text me 703-626-2226 or email me for answers to any of your questions.
Victoria M Baker
Licensed in VA, MD and DC
Coldwell Banker Residential Brokerage