Dear Olivia,
I’ve rented the same home for nearly 10 years, but my landlords are putting the home on the market. I’d rather stay put, so I’m thinking about putting in an offer when the house is listed. But is being a homeowner really worth it?
Sincerely,
Renter for Life
In short, yes, owning a home can definitely be worth it! But, as with anything, everyone’s situation is different. If you’re on the fence about becoming a homeowner, perhaps the following reasons can help you make your decision!
It’s a Wise Investment
First, owning a home can be a great investment. Your monthly mortgage payments go toward an asset that has the potential to increase in value over time.
In fact, according to the National Association of Realtors, most homeowners have gained over $100,000 in equity over the last ten years. Not only that, people who own a home have 40 times more wealth than people who rent, thanks to the increasing value of their property.
Another investment-related advantage of owning a home is that it can provide significant tax benefits. For example, you can deduct mortgage interest and property taxes from your income taxes. Additionally, if you sell your home after owning it for at least two years, you can exclude up to $250,000 of any profit from your taxable income (or up to $500,000 if you’re married and filing jointly).
A Sense of Community and Pride
Owning your home provides stability and a sense of community. When you’re a homeowner, you’re more likely to stay in one place for a longer period of time. This can provide a sense of stability and security that’s difficult to achieve when you’re constantly moving from one rental to another.
Additionally, owning a home can help you build stronger ties to your community. For example, you may get to know your neighbors better and develop long-lasting bonds because you know you’ll be in your home for an extended time.
Homeownership also provides a sense of pride. When you own a home, you have the freedom to make changes and improvements to the property that you wouldn’t be able to do if you were renting. This can be incredibly rewarding and can make your home feel like a true reflection of your personality and style.
Your Home is a Nest Egg
Finally, owning a home can provide financial security in your retirement years. If you’ve paid off your mortgage by the time you retire, you’ll have significantly lower housing costs than if you were still renting.
Moreover, you’ll have built up significant equity in your home that can be used to pay for your care as you age. Think of your home as a savings account – the money you put into it for the life of the mortgage will likely provide you with robust returns. It’s a great way to save for your golden years and provide your family with peace of mind, too!
If you’re considering buying a home, it’s important to weigh the costs and benefits carefully. However, for many people, the advantages of homeownership far outweigh the drawbacks. So, all that’s left is to decide if renting or buying is your best option!
As always, please feel free to reach out to me with additional questions by calling me at Wind River Realty at 307-856-3999!
~Olivia