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Top Benefits of Owning a Home
There are countless reasons to invest in homeownership, whether you are looking to build wealth or simply gain comfort and security in your everyday life. Whether you want to save money on rent or enjoy the benefits of financial freedom, there are many ways that homeownership can benefit you and your family for years to come. Here are just some of the benefits of homeownership that every homeowner knows and appreciates.
1) Building wealth
People who own homes typically build wealth more quickly than renters. In fact, homeowners have saved 33% more than renters over a 20-year period. The stability and appreciation of property values play a huge role in increasing your net worth as a homeowner, but when you combine that with tax deductions, it’s easy to see why owning beats renting hands down in terms of building wealth. There are countless financial benefits to becoming a homeowner, which is why most experts say homeownership is an essential part of retirement planning.
2) Creating a Foundation
For many, buying a home is more than a financial transaction; it’s an emotional one. Buying your own home creates a sense of stability and provides you with a sense of security. It allows you to create memories with your family in a place that’s truly yours.
3) Personal Benefits
Being a homeowner is good for your self-esteem. For example, many homeowners say that owning their own home has given them a greater sense of accomplishment and pride in themselves and their family. A recent study from Harvard University also suggests that homeowners tend to have higher levels of happiness than renters or people who live with others but aren’t married or otherwise partnered. Homeownership may also be beneficial to society as a whole, as studies show that it helps build stronger communities. When people feel more invested in their community, they’re more likely to get involved—and when everyone pitches in and works together, great things can happen!
4) Financial Benefits
Homeownership has many financial benefits, including lower costs for maintenance and repairs, mortgage interest deductions, and tax credits. Being a homeowner also allows you to use more of your money on other things rather than paying rent. Massachusetts residents can deduct up to $2,000 in mortgage interest from their federal taxes each year. This means that if you pay $2,000 in mortgage interest annually, you’ll save an additional $200 at tax time—and it will be even more if your income is above certain thresholds.
In addition to all these benefits, homeownership also has become increasingly important as rental prices have skyrocketed over recent years. According to Zillow, rental prices have increased by nearly 6 percent since last year alone. That means renters are spending about 30 percent of their income on rent—well above what experts recommend for people who want to build wealth.
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