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Benefits of Owning Your Own Home

INVESTMENT

Traditionally, home ownership is a great investment. Well…having said that, the market has been unusually UNKIND to folks here in the Phoenix area in recent years.

BUT…I can tell you that home prices NOW are lower than they were 10 years ago. Seriously. And interest rates are still hoovering at the lowest rates EVER.

In the history of real estate it has been widely believed that we can expect to see around a 5% appreciation. Some years more…recent years way less…and it varies from neighborhood to neighborhood.

That may not sound like much…but consider this:

You buy a home for $200,000 with as much as 20% downpayment. A $40,000 investment.

At an appreciation rate of 5% per year that home would have increased in value by $10,000. This means you earned $10,000 on your $$40,000 investment. Your annual return on investment is HUGE! 25%!

All the while, of course, you are paying your payment including property taxes. But, as of this writing, both property taxes and interest are deductible. This is a BIG tax advantage. In fact…almost the ONLY ONE LEFT except having kids!

STABLE MONTHLY PAYMENTS

If you are renting…you have NO CONTROL over the rising costs of housing. So when you own your own home. If you have a fixed rate mortgage your payment will only fluctuate based on taxes and insurance costs adjusting. Typically very minimal. I wonder what rent costs will be in 10 or 20 years?

FREEDOM AND IMPROVEMENTS

As a renter, typically you can not make many changes to the home. Minimally, you have to have permission from your landlord. And who wants to spend money on flooring, window coverings and even paint when it benefits someone else.

As a homeowner, you have not only the freedom to improve as you see fit, but you get the long term benefits of your investments and get to live in a space YOU created and YOU love.

 Next…what NOT to do when planning to buy a new home.