Homeownership has many benefits that come with it.
The most obvious benefit is building wealth. The U.S. Department of Housing and Urban Development (HUD) notes that “home equity is the largest single source of household wealth for most Americans.”
Home equity is the difference between the home’s fair market value and the outstanding balance of all liens on the property. Let us not forget about appreciation. Whilst there is no set year-to-year rate that is considered normal, reports indicate that you can expect around a 6.5 percent average value increase in your home each year.
Other wealth builders to consider are tax breaks and tax credits, such as the deductibility of property taxes and mortgage interest and the exclusion of capital gains, and the $8,000 first time home buyer and $6,500 home buyer tax credits.
Homeownership allows people to have greater control and inspires responsibility over their living environment. It helps stabilize and strengthen communities.
The U.S. Department of Housing and Urban Development (HUD) reports: “Homeowners accumulate wealth as the investment in their homes grows, enjoy better living conditions, are often more involved in their communities, and have children who tend on average to do better in school and are less likely to become involved with crime. Communities benefit from real estate taxes homeowners pay, and from stable neighborhoods homeowners create”
According to NAR’s Social Benefits of Homeownership and Stable Housing, homeownership brings with it:
1. Higher educational performance and better behavior of children
2. Lower community crime rates
3. Lessened welfare dependency among households
4. More household participation in civic affairs
5. Better household health
Get your own home now and enjoy these benefits. But be sure to get a real estate agent to assist you.