The benefits of owning a home are many! As a REALTOR® in Chicago’s northwest suburbs, I have witnessed many individuals and families finding financial and emotional security in their homes. This brings me great joy.
Financial benefits of owning a home
Long term it is cheaper to pay off a mortgage than to rent. Interest repayments on a home loan get less over time, thus building wealth and equity over the years.
Capital gains benefits are an important tax savings 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 (at the time of this post).
Mortgage repayments are a way of ensuring that an amount is saved every month. Unlike rentals, the amount of your repayment is usually based on a fixed interest rate, thus ensuring that costs are predictable.
Home equity loans are used by many as a way of saving on credit card interest rate (which are usually exorbitant). The interest on home equity loans, in most cases, is tax deductible.
Mortgage interest deduction from your income 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.
By making consistent payments towards your home loan over the years, you build a strong credit history for any future loans.
Social benefits of owning a home
There is another aspect of home ownership that shouldn’t be overlooked. These are the social benefits that come with home ownership, which have been researched extensively over the years.
One study by NAR (National Association of REALTORS®) 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 as they do not move around 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. You find more interest in local government policies, thereby ensuring that voices are heard during elections and when lobbying for change.
I keep your best interests a top priority and can help you make the very best home buying decisions. Let’s have a chat if you are considering a home purchase in Chicago’s northwest suburbs and surrounding.