If you are thinking of buying a home somewhere in Southern California’s Inland Empire, no doubt you have have done some research about the benefits of renting vs. buying your own home. However, I’d like you to consider another, often unspoken benefit of owning your own home. I’m suggesting that a home can actually help ‘build’ a person. (watch the Miranda Lambert video to understand this).
Me, my sister Kim (to my right), our dog Penny, and neighborhood kids
Here are Six Common Reasons or Benefits to Home Ownership:
- Tax Deductions. For both state and federal taxes, the interest paid on the mortgage is usually tax deductible….it’s a tax shelter. You can also deduct the property taxes you pay. Both help reduce your taxable income (keep more of your hard earned money) and enables you to receive a larger refund at tax time.
- Home Appreciation (Investment). Homes have lost 50+% of the appreciation since the 2006 bubble high’s. History shows home values increase about 3% a year when averaged out over time and even with the recent crash of home values, real estate has still outperformed stocks the last ten years. Between paying the loan balance down and the appreciation in value, you are creating a tangible retirement fund…..in the form of equity. Equity is the difference of what you owe on the home and what it’s value is. This equity can be leveraged to purchase investment properties in the future and increase your overall net worth and create additional monthly cash flow from monthly rental income.
- Housing Payment Stability. Renters have no idea how much their rent will increase from year to year. A homeowner with a 30 year fixed has peace of mind knowing that their payment won’t change. This protects you from the impact of inflation and makes your dollar go further.
- Freedom or Pride of Ownership. You get to decorate and design your home to match your taste. No loud neighbors to deal with….or you can play your music louder than you can in an apartment or condo. You also have a backyard for your pets, a place for your kids to play, or a place to plant a garden.
- A Home Creates a Sense of Community. People tend to take care of the community they know they will live in for an extended period of time.
- It’s Cheaper to Own Than Rent. Most of my first time home buyer clients end up having there mortgage payment be less than there rent payment….and that’s with No Down Payment!
For most people, the payment on a home mortgage is often the same or sometimes less then what they pay in rent!! Home affordability in California is at an all time high.
In my opinion, the most important reason for owing a home is captured in this song by Miranda Lambert, “The House That Built Me”. A home is a better place to raise a family. This song talks about the memories a home brought to this singer as a child. I often see people cry when they sell their home…even when moving and buying a nicer home, so I know that owning a home plays a significant role in a persons life. In fact, a recent Bankrate.com poll found 90% of homeowners say they don’t regret buying their home despite a nationwide tsunami of foreclosures, short sales, and loan modifications.
I was fortunate to have grown up in the same house (in MN) from the time I was 3 to when I moved out on my own after college. Looking back at the photos of my childhood, growing up with my sister, I realized most of them involve our home and neighborhood. In fact, I’m still friends with many of the neighborhood kids I grew up with playing baseball, hockey, and basketball in the street……as well as kick the can into the late evenings. Many experts claim that a stable home is required for a child to blossom into a confident, secure, respectful, and loving adult. This refers to the actual family life as well as the physical home. If you are unsure about this, just ask a person who’s dad grew up in the army and moved multiple times how much that impacted their adolescence.
I am so thankful for the stability my parents brought to my childhood (thanks Mom & Dad). A home can act as a refuge from the negative forces of this world, helps shape a child’s life, and increases their odds of success later in life.
Life is short, we only grow up once, and owning your own home has all kinds of financial benefits, but the memories that a home can provide are worth more than all the money in the world. I believe we owe it to our kids to provide this kind of stability in their lives….and create memories that will last a lifetime.
If you would like your kids to experience stability in their life by owning your own home and create lasting memories, I encourange you to find out what it takes to qualify for a home loan. If you need to improve your credit score, then call me for some direction or advice. I’m here to help. Brad Yzermans (951-215-6119).
P.S. And don’t worry, you don’t need a down payment!
Serving the communities of Temecula, Murrieta, Menifee, Wildomar, Canyon Lake, Lake Elsinore, Hemet, Riverside, Moreno Valley, and Corona…..and the entire Inland Empire region of Riverside & San Bernardino Counties.
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