Are you feeling the itch to own a home? Taking the leap from renting (or living with family), to purchasing a home is a big step! There has been some debate over these last several years on the value of owning. The consensus remains that it is a good decision for long term wealth and security.

As a REALTOR®, I have worked with many buyers and sellers over the years. Here are some things I’ve learned about homeownership.

• By making consistent payments towards your home loan over the years you build a strong credit history for any future loans.
• Mortgage interest deduction from tax is a huge savings, especially at the beginning of the loan when the interest payments are highest. The savings from the deduction of the origination fees of 1% is considerable. Property tax is also fully tax deductible.
• Long term it is cheaper to pay off a mortgage rather than to rent. Interest repayments on a home loan get less over time, thus building wealth and equity over the years.
• Mortgage repayments are a way of ensuring that an amount is saved every month. Unlike rental money the amount of your repayment is usually based on a fixed interest rate thus ensuring that costs are predictable.
• Capital gains benefits are an important tax saving on the eventual sale of a home. Married people are exempt of an amount of up to $500,000 and singles up to $250, 000.
• Home equity loans are used by many as a way of saving on credit card interest rates, which are usually exorbitant.

Besides the financial benefits there is another aspect of home ownership that shouldn’t be overlooked.  These are the social benefitsSave that come with home ownership, which have been researched extensively over the years. 

One study by NAR demonstrated how the American Dream of owning a home leads to positive changes in our physical and mental health.

• Children of home owners feel more secure because they do not move around as often; making it more likely that they succeed in school.
• The sense of belonging to a neighborhood or community leads to more participation in groups, organizations and volunteer work and local government policies, thereby ensuring that our voice is heard during elections and when lobbying for change.

Even though home ownership comes with responsibilities, there are many positives, even beyond these few I have mentioned.

I would love to visit if you considering a home purchase. I take pride in helping you make the very best decisions for you and your family. Reach out soon!