One of the main benefits of homeownership is the ability to build wealth over time. Some people refer to a mortgage payment as a type of “forced savings.” It’s not obvious that you are saving any money by making payments each month, but you are building up the value of an asset, similar to how you would build up the value of a savings account by making regular deposits.
Home ownership can be a very savvy financial investment for those who purchase a home within their budget.
There are also many tax deduction benefits for homeowners. Additionally, there are many financial incentives for first-time home buyers in the state of Indiana. With near record low interest rates, down payment assistance programs, and tax incentives, now could be the right time to buy your first home. Renting is appealing because initially it is more affordable than purchasing your own home, but long term, the advantages of buying your own home outweigh the disadvantages. Most importantly, you are not throwing away all that money on rent, you are building up valuable equity in a home you own.
Instead of paying off your landlord’s home or building, pay off your own home and help secure your future.
Homeownership is an important goal of a very large percentage of Americans and is an indicator of economic/financial health. Research has also shown that owning a home brings substantial benefits for families, communities, and the country as a whole. It allows families to put down roots and become part of a larger community. Some of the documented social benefits include higher student test scores by children living in owned homes, higher rate of high school graduation and lower teenage delinquencies, and a general increase in positive outlook in life, to name a few. Because of these many societal benefits, policy makers often promote homeownership.
MAKE THE MOVE
With historically low interest rates, rising rates for renting a home, and the new option for down payment protection in 2016, now is the time to help grow your nest egg with a home purchase. If you or someone you know is ready to take on the excitement of home ownership, give me a call. I can help you figure out your next step.