Financial Benefits of Home Ownership
Being a home owner has great financial benefits. Today, let’s look at these financial advantages.
Proof that owning your home is financially better than renting
- A study published by the Joint Center of Housing Studies at Harvard University shows 4 financial benefits of homeownership:
- Home ownership gives you a leveraged investment
- You’re paying for housing whether you own or rent – why not pay your own mortgage instead of your landlord’s?
- Owning a home is usually a form of “forced savings”
- Substantial tax benefits
- Owning is a hedge against inflation
- A homeowner’s net worth is 45 times greater than that of a renter.
- Last month, I showed how a family buying an average priced home this past January could accumulate more than $46,000 in family wealth over the next 5years.
- Some argue that renting eliminates the cost of paying taxes and home repairs. Every potential renter should realize that all expenses the landlord incurs are calculated into the rent payment – along with a profit margin for the landlord!
ApartmentList.com explains other disadvantages to renting:
“Our research indicates that not owning a home has a sizable financial cost, as renters miss out on low mortgage rates and are hit by higher rents.
This phenomenon may exacerbate inequality in our society, as those wealthy enough to invest in real estate benefit from lower interest rates, whereas minorities and younger Americans, hit by rising rents and student debt, risk being locked out of homeownership.”
Real Estate Bottom Line
Let’s discuss your particular situation to see if you can take advantage of home ownership.