We all need a roof over our heads, whether it's a home, apartment, condo, or townhouse. However, housing can be a complicated and even become an emotional decision. Especially after the downturn, people can be hesitant to buy a home, the good news is homeownership is still beneficial.
Health Benefits: Homeowners and their families are generally more engaged in the community and healthier individuals, mentally and physically, according to Mark Lindblad, research director at the University of North Carolina’s Center for Community Capital. Children who's parents own a home also do better academically.
Tax Benefits: if you're single or married, without any children, you probably don't have many deductions to help lower your tax burden. Owning a home automatically allows you to deduct taxes and interest paid that year. Make sure you speak with an Accountant to make sure your deductions are correct.
Stable Costs: Rents are rising in today's market and owning a home, with a fixed rate loan, makes your housing costs predictable. As you pay down the loan amount, your mortgage will cost you even less. Rent is always cheaper in the short term, but owning a home stabilizes that cost and lowers it in the long term. A rental will never do that.
Build Wealth: Homes typically go up in value, although that can fluctuate in the short term, house values in the long term are stable. Real Estate is a long term investment so be patient. Luckily there are also monthly gains in equity as you continue to pay your mortgage down. The bottom line is that real estate is still a great way to build wealth for you and your family.
Capital Gains Exclusion: When you sell your primary residence for a profit, you get to keep $250,000 if your single and $500,000 if you're married. You'll pay $0.00 in capital gains taxes. ZERO!
The financial benefits are clear but the social benefits are based on stability. So when thinking of buying a home, make sure you're going to stay there for the long term. Then get a fixed rate mortgage and look for downpayment assistance if needed. That, along with a stable job, will ensure that you reap the financial and social benefits of owning a home.
Need help making those decisions? Know someone buying or selling? Please contact me, Team Clayton Real Estate is ready to help you! Visit: www.teamclayton.com or email Kyle@teamclayton.com