Recently, Freddie Macreported on the benefits of home ownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”
ONE: Home ownership can help you build equity over time.
TWO: Your monthly payments will remain stable.
THREE: You may have some tax benefits.
FOUR: You can take pride in ownership.
FIVE: Home ownership improves your community.
Let’s expand on each of Freddie Mac’s points:
Home Ownership can help you build equity over time.
Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).
In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun reported that now the net worth gap is 45 times greater.
Your monthly payments will remain stable.
When you purchase a home with a fixed rate mortgage, the majority of the payment (principal and interest) remain constant. On the other hand, rents continue to skyrocket. Your housing expense is much more stable if you own instead of rent.
You may have some tax benefits.
According to the Tax Policy Center’s Briefing Book-“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to home ownership.
Here are four items from the Briefing Book:
Mortgage Interest Deduction
Property Tax Deduction
Profits from Home Sale
You can take pride in ownership.
Most surveys show that a major factor in purchasing a home is the freedom you have to design the home the way you want. From paint colors to yard accessories, you don’t need a landlord’s permission to make the house feel like a home.
“Home ownership does create social capital and provide residents with a platform from which to connect and interact with neighbors…Owning a home means owning part of a neighborhood, and a homeowner’s feelings of commitment to the home can arouse feelings of commitment to the neighborhood, which, in turn, can produce interactions with neighbors.”
There are many benefits to home ownership. That is why it is still a critical piece of the American Dream.
Author:Tyler Ford Phone: 520-907-5720 Dated: February 4th 2018 Views: 1,016 About Tyler: I’m Tyler Ford, and I’d like to tell you how my experience in real estate will work for you.
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I’m Tyler Ford, and I’d like to tell you how my experience in real estate will work for you.
I entered the real estate field as an agent in 1990, then became an investor. That eventually led me into the mortgage profession, where I was recognized nationally as a top producing mortgage originator and was proud to lead the #1 mortgage team in the US. I was the #1 producing loan officer in the nation at Home Services a Warren Buffet company doing business at Long Mortgage in Tucson, AZ.
Closing more than 1,500 loans while in the mortgage business required working closely with listing and selling agents and escrow companies to ensure smooth real estate transactions. That experience, which gave me firsthand knowledge of how to facilitate a smooth closing, still benefits my real estate clients today.
In 2007, when the economy turned, I stepped away from the mortgage profession and back into real estate as a Realtor® and investor.
Investing in real estate and helping others do the same as a wealth-building strategy is truly rewarding work. As an investor, I have owned more than 150 properties. Along with land development, my investment portfolio includes single family and multi-unit properties. Some I keep as rentals; others I buy, rehabilitate, and sell for a profit.
I am Tucson’s investor-friendly Realtor.
I’m a lifelong Arizonan who was raised in Tucson and graduated from Northern Arizona University in Flagstaff. My wife Mimi and I are passionate athletes, enjoying all the outdoor benefits Tucson has to offer.
When I’m not working for my clients, the sports of cycling, mountain biking, running, and swimming fill my free time.
I am known as Tucson’s cycling Realtor®. Check out the website I put together of all the best bike rides in Arizona http://www.arizonabikerides.com/