Homeownership is the classic “American Dream.” Yet, in today’s time of rising prices and pinching paychecks, you may be wondering if this goal is worthy of pursuit.
The answer is yes!
Now, we at NeighborWorks Columbus are admittedly a tad bias toward homeownership, but with good reason. While the economy is known to fluctuate at different periods of history, the benefits of homeownership are long-standing. With that, let’s dive into a few of the enduring benefits of owning a home:
- Wealth and equity:
Unlike many things, a home is an asset that increases in value over time. So while paying your mortgage each month, you are basically contributing to your own savings account. As you pay down your mortgage debt, your home’s equity increases, meaning you are likely to make money if you sell your home down the line. In addition, you have an asset to pass down, creating a generational wealth pattern.
- Predictability:
Homeownership creates a stability that renting just can’t offer. Landlords also have to deal with turbulent times and rising costs, and those can be passed down to renters over time. Or they could decide to sell the property. Mortgage rates are locked in, so you can settle into a predictable payment, knowing you also won’t be asked to move.
- Perks of stability:
Stability has more to offer than just a predictable payment. It comes with benefits that can’t always be quantified. People who are homeowners have lower rates of anxiety and stress; have better health outcomes; and children with better education outcomes. Of course, this is not true across the board in every circumstance, but studies show overwhelmingly that staying in place is good for you.
- Tax benefits:
Homeowners pay fewer taxes. In both federal and state tax filings, homeowners receive a deduction on their income tax. You can also receive deductions for property taxes paid and mortgage interest payments when you file your income tax.
- Connection:
If you are settled into a neighborhood for a time, you will know you get to know your neighbors. This is how friendships are built sometimes. Additionally, it’s an added measure of security when neighbors can look out for each other and know who is generally supposed to be seen around.
Ideas:
- Long-term benefits of homeownership (June)
- Exciting Summer Updates (Providence Pointe Groundbreaking, EW celebration, Newman’s Crossing)
- Going through the process: Counseling
- Going through the process: Lending
