7 Benefits of Owning a Home
- Tax Benefits - The U.S. Tax Code allows you to deduct certain costs such as the interest you pay on your mortgage, your property taxes and other costs related to home buying.
- Appreciation - Historically, real estate values have had a stable long-term growth pattern. In fact, median single-family existing-home sale prices in Phoenix Metro have increased on average 3.4 percent each year from 2000 to 2017, according to the Cromford Report. The recent housing crisis has caused some to question the long-term value of real estate, but even in the most recent 17 years, which included quite a few very depressing years for the housing market, values are still up 57.6 percent on a cumulative basis. While we are sure to experience more housing depressions, housing prices always trend upward over the long-term.
- Equity - Home improvements are just one way to build equity in your home. With every mortgage payment you make, you are building equity ownership interest in your home. Every rent payment you make, is money you won’t ever see again.
- Savings - Building equity in your home is a ready-made savings plan. When you sell, you can take up to $250K ($500K for married couples) as gain without owing any federal income tax.
- Predictability - While property taxes and insurance can vary from year to year, your fixed rate mortgage payments never increase. Unlike rent, which can increase each year, mortgage payments offer a predictable factor in your budget.
- Freedom - The home is yours to decorate, upgrade or add amenities to satisfy your tastes. You don’t need to ask a landlord for permission to make changes.
- Stability - Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.