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Financial benefits for Owning a Home
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)

