If you are thinking of buying a home somewhere in Southern California’s Inland Empire, no doubt you have thought about and possibly researched the benefits of owning your home.
There is more benefit to home ownership than comparing renting vs. buying. Let’s consider the financial, social & family, and even the intangible benefits related of home ownership.
Financial Benefits to Home Ownership
- Tax Deduction. For both state and federal taxes, the interest paid on the mortgage is usually tax deductible, as well as the property taxes. This is often referred to as a tax shelter. A tax shelter reduces your taxable income (keep more of your hard earned money) and enables you to receive a larger refund at tax time.
- Home Appreciation (Investment). The financial benefit of home ownership can easily be measured. History shows home values increase about 3% a year when averaged out over time. Many people are not aware that 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.
- Housing Payment Stability. Rent typically increases 3% (national avg.), and sometimes rises up to 7% a year. This uncertainty is like have a risky adjustable rate mortgage! A homeowner with a 30 year fixed has peace of mind knowing that their payment will never change. This protects you from feeling the effects of inflation and makes your dollar go further.
- It’s Cheaper to Own Than Rent. Many first time home buyer clients will have a mortgage payment be less than or equal to their rent payment….and that’s with No Down Payment!
…the memories that owning 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. – Me
Family & Social Benefits of Home Ownership
The effect of home ownership on children is well documented and a strong predictor for a positive outcome in their life. Did you know that in one Canadian study, 86% of new home owners stated they are happier since owning a home?
- Kids are more likely to remain in school, graduate and attend college, thus have higher earnings in the job market.
- Less chance of there being a teen pregnancy
- Children lead healthier lives
- Children perform better in school
- Lower teenage delinquencies
- Greater civic participation in local community issues, memberships, and church attendance
- Less likely to become crime victims
View more benefits here
My Experience with Home Ownership
There are other benefits that just cannot be measure and listed in column of some spreadsheet…..memories.
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, and at the end of the day, that is what matters most. This song talks about the memories a home brought to this singer as a child.
It’s common to see people cry when they sell or move out of their home……even when moving and buying a larger or nicer home. How many people go back and visit their childhood home 20-30 years after moving out and show their own children where they lived?
These are clear indicators that owning a home plays a significant role in a persons life. How many people go back to an apartment complex 30 years later?
In fact, a recent Bankrate.com poll found 90% of homeowners say they don’t regret buying a home despite a nationwide tsunami of foreclosures and short sales which robbed people of any financial benefit. That’s how important home ownership is to family and your kids.
I was fortunate to have grown up in the same house (in MN) from the age of 3 to when I moved out on my own after college. Looking back at the photos of my childhood, I realized most of them include our home or neighborhood in the background. I’m still friends with many of the neighborhood kids I grew up with playing baseball, hockey, basketball or kick the can late into the evenings.
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 encourage 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. Call direct (951-215-6119).