In today’s housing market, here are some of the financial benefits to owning a home: increasing equity, the chance to build your net worth, and appreciating home values. If you’re a renter, thinking about homeownership can lead you towards a stronger future. These are the top three often-overlooked financial benefits of homeownership and how preparing for them now can pave a way to greater financial security and savings.

1. You Won’t Always Have a Monthly Housing Payment

Personal finance advisor Dave Ramsey explains:

“Every payment brings you closer to owning the house. When you pay your rent, that money is spent. Gone. Bye. Not returning. But when you pay your mortgage, you work toward full ownership.”

As a homeowner, eliminating the monthly payment you make on your house is something to look forward to. It’s a huge win and a factor in how homeownership can provide stability and savings in your life. The moment that you buy a home, your monthly housing cost begins to work for you as forced savings in the form of equity. When you build equity and grow your net worth, it will allow you to continue and reinvest those savings into your future, maybe even by buying that next dream home. The possibilities are truly endless.

2. Homeownership Is a Tax Break

One thing people who have never owned a home don’t always think about are the tax advantages of homeownership. The same article states:

“You have tax advantages. Many of the costs of owning a home—like property taxes—are tax deductible. And if you’re paying off a mortgage, you’ll get to count your mortgage interest as a deduction when you file your tax return.”

Whether you’re living in your first home or your fifth, it is a huge financial advantage to have some tax relief tied to the interests that you pay each year. This is something that you definitely don’t get when you’re renting. Make sure to work with a tax professional to get the best possible benefits on your annual return.

3. Monthly Housing Costs Are Predictable

The third benefit is the fact that monthly costs start to become more predictable with homeownership. It is something that doesn’t happen if you’re renting. Ramsey also notes:

“Rent rates will go up. Even if you found a killer deal in a hot area, inflation, competition, and rising property values will cause your rent to go up year after year.”

With a mortgage, you can keep your monthly housing costs relatively steady and predictable. These monthly costs are mostly based on a fixed-rate mortgage. It allows you to budget your finances over a longer period. Rental prices have been skyrocketing since 2012, and with today’s low mortgage rates, it’s a great time to get more for your money when purchasing a home. If you wish to lock-in your monthly payment at a low rate and you do have a solid understanding of what you’re going to spend in your mortgage payment each month, buying a home could be your best bet.

Bottom Line

If you are ready to start feeling the benefits of stability, savings, and predictability that come with owning a home, call us at My Tampa Agent to determine if buying sooner rather than later is right for you.

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