Five financial reasons to buy a home

The American dream for many years has been to own a home. After the last few years, there are some that may think home ownership is not a good idea – for others, they are very excited to own a home.  People want to buy a home for many reasons, here are some financial reasons to buy a home.

1- Housing is typically the one leveraged investment available.  Not many people want to borrow money to buy stocks and bonds, but they will borrow money to buy a home.  Housing is one area where you can borrow against an asset to try and make money in the long term.

2- You are paying for housing whether you own or rent.  Homeowners are paying a mortgage, while those that are renting are paying their landlord.  Renters don't gain the equity in the home, their landlord does.  For some, they can buy a home for less than they can rent.

3- Owning is a forced form of savings.  Some people have trouble saving money and will figure out a way to make their house payment, but can't save any extra money.  Since most homes will typically appreciate in value, it's a way to save for the long term.

4- There can be substantial tax benefits to owning a home.  Many homeowners are able to write off their mortgage interest and property taxes.  This can help lower your tax bill.  If you aren't sure about what you are able to do, talk to your accountant and see if you can save yourself some money.

5- Owning is a hedge against inflation.  Housing costs and rents have tended to go up over most time periods at a rate higher than the rate of inflation.  This helps make home ownership a good proposition.

As we have seen over the last few years, there is not a guarantee that your home value will increase, but for many of us, it has.  Values may have dropped for a couple years but for many, home values have been increasing again. Interest rates are great, so it's a great time to buy a home!

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants, Inc, An Equal Housing Lender, NMLS#150953 - Email - Website

Written By

Currently a Senior Loan Officer at Cross Country Mortgage LLC, it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

Related Posts

Super Real Estate Agent… 15 years in a row

The Super Real Estate Agents list is compiled yearly by Twin Cities Business and Mpls.St.Paul Magazine.All Super Real Estate Agents have been evaluated based on overall client satisfaction and whether a consumer would highly recommend them to...

Saint Paul Winter Carnival 2023… started in 1886 to prove the city wasn’t unfit for human habitation

Saint Paul Winter Carnival 2023, oldest winter festival in the United States, runs January 26-February 5, 2023.

Subscribe to Our Newsletter for Market Updates & Mid-Century Modern Listings

Our weekly HomesMSP Update includes current local market information and a curated list of mid-century modern properties for sale, plus posts from an inspector, a lender, a stager, info about neighborhoods, life in the Twin Cities… even recipes!
Hidden

Blog Categories

Archives

Sharon and John Hensrud

About Us

The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.