The long-term advantages of home ownership

Homeownership has long been considered a cornerstone of the American Dream, and for good reason. Owning a home can bring a range of long-term benefits that extend far beyond just having a place to live. Let’s explore some of the advantages of homeownership and how they can benefit you in the long run.

Building Equity

One of the most significant advantages of owning a home is building equity. Equity is the difference between the market value of your home and the amount you owe on your mortgage. As you pay down your mortgage, the amount of equity you have in your home increases. Over time, this equity can be used to help finance major expenses, such as education, home improvements, or even retirement.

Long-Term Appreciation

Homes generally appreciate in value over time. According to the National Association of Realtors, the average annual appreciation rate for homes in the United States is around 3%. While this rate can vary by location and market conditions, owning a home can be a solid long-term investment. As your home’s value increases, so does your potential equity.

Tax Benefits

Home ownership also provides several tax benefits. Homeowners can typically deduct mortgage interest, property taxes, and some other expenses from their income taxes. These deductions can add up to significant savings over time and can help offset the cost of homeownership.

Thanks to the Mortgage Interest Deduction, federal law allows you to deduct the interest you pay on up to $750,000 of combined mortgage debt if you are filing your taxes as an individual or as a married couple filing jointly. You can also deduct the state and local property taxes that you pay each year on your home, up to $10,000.

Freedom to customize

When you own your home, you have the freedom to customize it to your liking. You can paint the walls, renovate the kitchen, and make other changes to your home without having to ask for permission from a landlord. This can help you create a living environment that truly reflects your personality and style.

Investment

Owning a home can also be a sound investment. While home values can fluctuate in the short-term, over the long-term, real estate tends to appreciate in value. This means that if you buy a home and hold onto it for many years, it’s likely to increase in value, providing you with a valuable asset.

From building equity and stability to tax benefits and the freedom to customize, owning a home can positively impact your finances and overall quality of life. Additionally, it provides an opportunity to establish deeper community ties and can be a sound investment over the long-term. While owning a home requires a significant investment, the long-term benefits make it a worthwhile endeavor for those who are able to do so.

Ready to take advantage of all the perks home ownership has to offer? Contact the mortgage experts at First Ohio to learn more about your loan options and begin the pre-qualification process!