Why Home Ownership Should Be Your Goal
From graduating college to securing a good job, life in your 20s and 30s is a time of setting and achieving big life goals. While this time in your life can be stressful, exciting and in constant motion, it’s important to continue setting goals so that you and your (current or future) family are set up for financial success.
If you’re looking for a new goal to add to the list, let us recommend a top contender: buying a home. While buying a home may seem intimidating and unachievable, the benefits of becoming a homeowner far outweigh the prospects of parent-basement living or splitting the rent with roommates for years to come—trust us, we’ve been there!
Whether you are ready to buy a home today, or want to make home ownership a 5-year goal, let’s take a quick review of three benefits of buying a home and why it should be a high priority for investors at every age:
Three Benefits of Buying a Home:
- Invest in Equity, Not Monthly Rent: When buying a home, the first step is to determine what you’re able to afford. To help, we’ve created a Mortgage Qualifier Calculator, designed to walk you through the process of finding out how much you can borrow, with a complete amortization schedule of your mortgage payments. (For other helpful financial calculators, visit this page.)
Once you’ve completed that exercise and are financially stable and ready to buy a home, it’s a smart financial move to put your money into something you own versus a rental. Why? Because while “buying a home is an investment, it is also a key component of building wealth. Every mortgage payment means you own more of your home, which you should get back when you sell it (hopefully at a higher price than you paid for it)” (Money).
- Enjoy the Tax Benefits:Thanks to Uncle Sam and U.S. Tax Code, there are additional financial benefits to buying a home, such as the ability to deduct or write-off various expenses and costs that are associated with home ownership. According to Intuit: TurboxTax, below are some of the tax benefits available to homeowners:
- Mortgage Interest: For all homeowners, “you can deduct interest on up to $1 million of debt used to acquire or improve your home.”
- Real Estate Taxes:Don’t forget to take advantage of deducting any local property taxes.
- Energy Savings: From energy efficient lighting to approved central AC “energy-saving home improvements to your principal residence can earn you an additional tax break in the form of an energy tax credit worth up to $500.
- Take Pride in Ownership: Money aside, perhaps one of the best reasons to buy a home is the sense of ownership and the freedom that comes along with securing the keys to your very first house. Once you buy a home, you have the ability to make it your own—from putting in new landscape to renovating the home’s interior—the options are limitless to make your home, yours.
If you’re ready to buy a home and want help in the process, contact our team at American Heritage Credit Union and we’ll help you get started as you apply for your first mortgage.