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Financial benefits for Owning a Home

Jacqueline Little • Sep 08, 2021

If you’re on the fence about becoming a homeowner, especially during these unsettling economic times, you may want to consider weighing the pros and cons of homeownership first. Homeownership can often represent financial success, life stability, and community contribution. But it also isn’t for everyone.  Let’s break down some of the little-known benefits of owning a home.



The biggest benefit of home ownership is definitely a financial one. Although you may be looking at a big investment up front, the long-term savings and opportunities far outweigh the initial cost burden. One of the most notable advantages is building equity. Equity is the value you have in a given asset. When you pay your mortgage every month, you’re building equity in your home. In contrast, when you rent a home, you are paying a landlord versus contributing towards an actual asset. Building equity is often considered a financially intelligent investment.


When you build equity, you build wealth. As your property value increases, so does your equity which allows you to eventually sell your home for profit. You can use that money to reinvest in a new home or an investment property. If you don’t sell, you are still creating a long-term savings plan for yourself and your family. You may tap into your home’s equity in the future for retirement use.


General financial education is also a perk when owning a home. The financial knowledge that comes with buying and sustaining a home sharpens your financial skills, which can be passed on to your children, preparing them for future financial decisions. Tax benefits are also a big advantage of being a homeowner. Any interest paid on a home mortgage is tax-deductible. You may also reduce your taxable income further by deducting property tax. Furthermore, homeowners may be exempt from up to $250,000 after selling their home due to an exemption in the capital gains tax. A big benefit from being able to see your home!


If it is in your favor to purchase a home right now, why not? Currently the market is hot, but that just means everyone sees the value in home or property ownership. Long associated with the American Dream, home ownership can secure a strong financial future which makes it an appealing option for so many people.




By, Jacqueline Little (RB-21076)


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By Engage Team 15 Mar, 2022
From the Big Island to Oʻahu One of the benefits of living in the island archipelago of Hawaiʻi is that the other Hawaiian islands are a short flight away. It was during a spontaneous visit to Oʻahu from the Big Island of Hawaiʻi – where we lived for 6 years – that my partner and I got the idea to switch islands. Although each of the Hawaiian islands has unique merits, we were ready to experience Oʻahu’s convenience, plentiful hiking trails and beaches, and diverse economic opportunities. After landing a job offer based in downtown Honolulu, our relocation planning began. Since we were still largely unfamiliar with Oʻahu, we tailored our apartment search to a few factors, including: proximity to work; walkability to groceries and other necessities; and amenities like air conditioning, a pool, and a gym. Of course, budget was a factor as well, and we set our price range accordingly. Choosing Kakaʻako While the apartment criteria narrowed our search to three Honolulu neighborhoods – Waikiki, Ala Moana, and Kakaʻako – we focused on Kakaʻako because of its newer buildings and walkability to shops and dining. While living in a downtown Airbnb, we cruised sites like HICentral , Zillow , and Craigslist to find leads, and looked at several apartments before securing a 1-bedroom in the recently completed Keauhou Place tower. In addition to our unit having an incredible view overlooking downtown and the harbor, it came with shared amenities like covered parking, a pool, gym, and barbecue grills. As well, we enjoyed access to its ground-level pedestrian mall, which offered a natural grocery store, spa, and spots for dining and takeout – not to mention a short jaunt to even more options at SALT and Ohana Hale Marketplace . Aside from walkability, the location served as a central jumping off point for weekend adventures around the island. Change of Scenery Two years, a pandemic, and one job transition later, we were ready for another change of scenery. Since I switched from working in-person to working remotely, we no longer needed to live close to downtown, and began exploring the idea of moving to Oʻahu’s east side, where we would be closer to some of our favorite hikes and beaches. While the search process was similar, the inventory in our budget range was different, and it took a bit longer to find a suitable home. As opposed to the ample selection of apartment and condo listings in Honolulu’s urban core, the east side neighborhoods of Kaneohe, Kailua, and Waimanalo offered mostly ADU’s (additional dwelling units) or single family homes converted into multiple rentals units – sometimes lacking the privacy or amenities we needed. It took about 3 months to find our ideal rental home in Kailua, a similar 1-bedroom condo within a comfortable walking distance to town and the beach. It took a lot of patience, because the inventory was more limited; but, luckily we had flexibility to keep searching until we found our match.  Urban v. Suburban: Which to Choose? Ultimately, I am glad we got the experience of living in both Honolulu and Kailua. Particularly, the Kakaʻako neighborhood, with its abundant street art, well-maintained parks, and diverse shops and dining options, is a great place to get a feel for Oʻahu’s urban core. On the other hand, Kailua has an intimate, beachy feel, which could be a better fit if you can work remotely – and avoid the driving commute into “town” (local shorthand for Honolulu). Either way, pre-determining your unique home, budget, timing, and lifestyle criteria can help to narrow your search and point you in the right direction. About the Author Ali Slous is the founder of Perspective Media , an Oʻahu-based creative agency whose mission is to empower entrepreneurs and small businesses to channel creativity in ways that generate both professional success and personal satisfaction. When she is not creating Perspective Media, Ali enjoys access to the incredible nature Hawaiʻi has to offer. Resources HICentral: https://www.hicentral.com/ Zillow: https://www.zillow.com/honolulu-hi/?utm_content=319854744|1301821912900950|kwd-81363927204438:loc-190|81363895177301|&utm_campaign=zbw_br_natgeo_usa_x_nat_cities_e_b_1&semQue=zillow%20honolulu&msclkid=330d4f9cfa6b19b9b07d2db5ba061625 Craigslist: https://honolulu.craigslist.org/search/hhh SALT: https://saltatkakaako.com/ Hale Ohana Marketplace: https://www.ohmhawaii.com/ Perspective Media: https://perspectivemediahawaii.com/
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