5 Greatest Benefits Of Homeownership

Dated: 07/20/2017

Views: 21

The 5 Greatest Benefits of Homeownership


The 5 Greatest Benefits of Homeownership | MyKCM


Recently, Freddie Mac reported on the benefits of homeownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”

  1. Homeownership can help you build equity over time.

  2. Your monthly payments will remain stable.

  3. You may have some tax benefits.

  4. You can take pride in ownership.

  5. Homeownership improves your community.

Let’s expand on each of Freddie Mac’s points:

Homeownership 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 (principle 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 homeownership.

Here are four items from the Briefing Book:

  • Mortgage Interest Deduction

  • Property Tax Deduction

  • Imputed Rent

  • 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.

Homeownership improves your community.

The National Association of Realtors recently released a study titled ‘Social Benefits of Homeownership and Stable Housing.’ The study explained:

“Homeownership 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.”

Bottom Line

There are many benefits to homeownership. That is why it is still a critical piece of the American Dream.

Want to Advertise on this Site?

Latest Blog Posts

You Need An Agent Who Will Always Put You First

You Need an Agent Who Will Always Put You FirstWhether you are a rookie homebuyer or have gone through the process many times, having a local real estate expert who is well versed in the

Read More

The Number One Reason To Put Your House On The Market Today

The #1 Reason to Put Your House on The Market TODAY!The National Association of Realtors (NAR) released the results of their latest Existing Home Sales Report which revealed that

Read More

Americans Rank Real Estate Best Investment For 5 Years Running

Americans Rank Real Estate Best Investment for 5 Years Running! [INFOGRAPHIC]Some Highlights: Real estate has outranked stocks/mutual funds, gold, savings accounts/CDs, and bonds as the best long

Read More

4 Reasons Why We Are Not Heading Toward Another Housing Bubble

4 Reasons Why We Are Not Heading Toward Another Housing BubbleWith home prices continuing to appreciate above historic levels, some are concerned that we may be heading for another housing ‘boom &

Read More