This week marks the anniversary of our nation's independence. It is a special time for our country to celebrate the freedom that came at such a cost, and the opportunities afforded to every one of us today. The freedom we now enjoy includes the ability to build financial security and wealth. Part of the American Dream is the financial benefits that come with homeownership. This blog is about the freedom and benefits of owning your own home. We take this time honor our founders and continue to set our unique path forward.
How Does Homeownership Help Us Be Free to Follow Our Dreams?
Home as an Investment - Property typically appreciates in value over time. The Federal Housing Finance Agency tells us that home values have appreciated an average of 3.33% since 1091. The math on that statistic means if you purchased a home in 1991 for $100,000, your home could be worth $250,000 today. This appreciation, plus the amount of mortgage that has been paid, means increased home equity and net worth for you. You can parlay that into a bigger/better house, a second house, vacations, retirement savings, or any other dream you can conceive.
Homeownership as a Tax Deduction - The government has made it beneficial to own property over renting. The tax deductions on mortgage interest paid, mortgage discount points, mortgage insurance, and property taxes reduce your taxable income and therefore you keep more of your income. There are also incentives to maintain property ownership status by deferring taxation on capital gains when you sell a home, make owning a home more likely to be a financial win.
Homeownership Encourages Higher Net Worth - The Federal Reserve surveyed consumer finances and concluded that homeowners have 36 times greater net worth than renters. There are a number of factors that go into net worth, so adding home owner to your credentials, as stated above, can greatly improve your overall financial picture and opportunities.
Homeownership Creates Savings - Many people do not have the discipline and forward thinking to set aside money for savings each month, even though it is basically common knowledge that doing so is a very good idea. A mortgage payment can function as a savings account in the form of equity in your home. As you pay down your principal, and your home value increases, your equity grows and gives you a nest egg for your future.
This 4th of July, as you're enjoying fireworks, cookouts, parties, or however you celebrate, take a moment to consider with gratitude all the opportunities we have to fulfill our dreams. When you're ready to experience the great benefits of homeownership and find the perfect Manassas house, contact us and let's get started.