Let’s expand on each of Freddie Mac’s points:
Homeownership can help you build equity over time.
The Federal Reserve reports that a homeowner’s net worth is 44 times greater than that of a renter ($254,900 vs. $5,790).
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 increase. 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.
Homeownership creates stability, a sense of community, and increases civic engagement. It’s a way to add to the strength of your local area and drive value into your neighborhood.
Bottom Line
The benefits of homeownership go well beyond the basics. Homeownership is truly a way to build financial freedom, find greater satisfaction and happiness, and make a substantial impact in your community. If owning a home is part of your dream, contact your Avenue 5 Community Homeownership Program for information and guidance on how to get started.
