For most people, buying a home is a very important and momentous decision in life. Often, when people think about purchasing a home, the things that excite them most are intangible things – things like having a place of their very own to make memories and share life’s moments, big and small, getting to know new friends and neighbors, and enjoying all that the community has to offer. And without question – these are the things that truly make a house a home.
There are also other definite advantages to home ownership, as well, however – important financial advantages that some people are unaware of, or may overlook. At GayRealEstate.com, we have been fortunate to be an integral part of the home buying process in communities across the country for over 25 years, as we work to connect LGBTQ home buyers with gay realtors who can provide them with the representation they need in the search for their next home.
Here are only a few financial benefits of which you should be aware when you make the decision to purchase a home:
- Home Ownership Allows you to Build Valuable Equity: Equity is the amount of value that you have in a particular asset. In the case of home ownership, as you make your mortgage payments each month, you build equity in your home. As a result, every month, when you make your payment, you own a little bit more of your home. Each month, you are increasing your security for the future, which is always a financially savvy choice.
- Home Ownership Grows Wealth Over Time: Unlike some property purchases which depreciate in value with time and use, home values often (although not always) increase in value over time. As a result, not only are you building up equity as time goes by – you are also often increasing your chances to sell your home for a profit, in the event you make a move. Eventually, you may be able to use that profit in any number of financially beneficial ways.
- Home Ownership Allows You to Plan for Costs: Unless you choose to refinance and change the terms of your mortgage, you know the fixed base cost of paying for your home each month, now, and into the future. Rent, by contrast, is not fixed, and can fluctuate greatly over time. As a result, it can often be harder to make firm and predictable financial plans for your future when you rent your home. Beyond simply knowing the fixed payment you will be making each month, when you own your own home, you also have control over other factors that may provide you with long-term financial benefit as well. For example, you may decide to install energy-efficient appliances, or solar heating, or a programmable thermostat – choices that are likely to save money in the long run. As a homeowner, it is your prerogative to make those choices – as a renter, your landlord typically makes them for you. Being a homeowner gives you the freedom to make both short and long-term decisions with your specific financial goals and plans in mind.
- Home Ownership Provides Valuable Tax Benefits: Another financial advantage of home ownership is that it provides a number of tax benefits. One of the most notable is a deduction for the portion of your mortgage spent on interest and property taxes. This deduction is helpful, particularly in the first years of home ownership when the majority of each mortgage payment is often going largely toward interest instead of principal. Other tax advantages of home ownership include writing off any mortgage points on your loan during the first year of ownership, as well as eventually being able to tap into a home equity line of credit after you have built up enough equity in the home, and which is also tax deductible in certain circumstances.
Clearly, making the decision to purchase a home has a number of benefits, financial and otherwise. Finally, as Oprah Winfrey has said “I will forever believe that buying a home is a great investment. Why? Because you can’t live in a stock certificate. You can’t live in a mutual fund.”
At GayRealEstate.com, we would love to be a part of helping you with this major life decision. Whether you are looking to buy your first home, purchase a larger home for your growing family, downsize for retirement, or purchase the vacation home of your dreams – whatever your needs, at GayRealEstate.com you can connect free with an LGBTQ real estate agent that will work as your advocate, negotiating on your behalf.
Choose the perfect agent on-line at www.GayRealEstate.com and start a conversation, or call us Toll Free 888-420-MOVE (6683).