• Elia Hutchins

7 Benefits of Home Ownership: from Tax Shelters to Revenue Streams to Cost Savings

Is buying a home a good investment? Making that leap into homeownership can be daunting for most people. And while there are many financial, economic, and personal factors to consider, many experts agree that buying a house is a wise and great investment. This blog reviews seven benefits of owning a home from tax shelters to revenue streams to cost savings. What’s not to like?

  1. Homeownership is an investment that builds equity over time Many studies and financial experts prove buying a home can yield a valuable nest egg when you’re ready to retire. While building equity through homeownership isn’t a guarantee, for people who buy a house and live in it for a long-time, the facts prove that the home’s value is likely to increase over time, increasing your wealth.

  2. Take advantage of homeownership with a substantial tax shelter When it comes to taxes, no one wants to part with their hard-earned dollars to give a chunk of it to Uncle Sam. Many people look at financial instruments that will help them shield their income through tax deductions. While having a mortgage is a long-term financial commitment, it comes with substantial tax benefits of owning a home. You can also take several tax deductions, including mortgage interest, mortgage points, private mortgage insurance (PMI), and a home office, for the growing number of people who work from home. Other tax credits may also be available for qualified first-time homebuyers and homeowners who invest in energy-saving improvements such as home insulation, solar panels, certain roofing materials, energy-efficient windows, etc.

  3. Homeownership creates stability When people are ready to put down roots and start a family, many begin to think about homeownership. Owning a house offers families a sense of security and stability like no other. Any renter knows first-hand that the rug could be pulled from under them with little notice. This common scenario happens when a homeowner decides to put their house up for sale or they want to move back into their home. Renters also face annual rent increases. If renters are lucky, they’ll have a responsive landlord attentive to unexpected problems that must be fixed right away (plumbing, heating, roof leak, etc.). With homeownership, you get the security of knowing that you’re in charge of your destiny and where you’ll be living.

  4. Design and decorate your home to make it your own Owning your own home gives you full reign to make it your own. You can paint the outside and inside any color, hang permanent fixtures, remodel a bathroom, change the carpets, install new flooring, change the tile color, etc. You get to decorate your home any way that perfectly matches your taste – whenever you're ready to make any cosmetic changes.

  5. Enhance your lifestyle in your home Another benefit of owning a home is the sense of community. You can make new friends with your neighbors, support your local merchants, or buy produce from the farmer's market in town. Plus, when you're the castle owner, you get to decide if you want to get a pet or two! Whether you're a cat lover or a dog lover, no one can tell you any longer that you can't have a pet. And if you so choose, you can build raised beds to grow vegetables, enjoy an herb or flower garden, plant some fruit trees, install a hot tub, etc. The main point here is that homeownership also enhances the type of lifestyle you desire.

  6. Create a flexible revenue stream Owning a home also provides you with an excellent opportunity to consider a roommate or two. Of course, this is entirely up to you, but as a home owner, you can choose to rent out a room or two rooms to generate more income and savings. The additional savings will come as your tenant(s) can help split typical monthly costs for water, electricity, cable, and garbage. Some people even rent their garage for several hundred dollars per month in crowded cities. Another way you can consider generating income could be to Airbnb your property, which would give you added flexibility as to when you wish to have guests staying in a room or renting the whole house. For the latter, you could consider listing your home on Airbnb when you plan to be on vacation or traveling on business.

  7. Money-savings alternative with built-in storage Approximately 13.5 million U.S. households rent a storage unit. Pricing for storage units varies by region and state. Like rents, storage rental prices go up not only annually but often more than once per year! Renting a storage unit can add up to thousands of dollars. In Santa Rosa, California, a 10x10 unit (the most common storage size rented in the U.S.) runs $250 per month excluding insurance which can tack on another $30 per month. Multiplying the average 14 months that people rent a storage unit will cost $3,750. Yet this doesn’t consider that many people keep their storage unit longer than they expected. If you kept this unit for 5 years, it would cost $18,750! So another advantage to homeownership is that a house garage provides needed storage capacity, allowing you to avoid wasting money on storage rentals. Homeownership lets you organize and store your possessions in your garage and invest your savings elsewhere.

Owning a home is part of the American Dream. I want to encourage anyone to strive to achieve this worthy goal for all the reasons listed above. Homeownership gives people a sense of pride and accomplishment that is priceless. Nothing comes closer than your home being a true reflection of you. When you are ready to buy a home, please contact me as I’d love to guide you as your real estate professional.

10 views0 comments