It's National Homeownership Month in June and here's Reason #9 why you should own your own home:
OWNING A HOME IS INVESTING IN YOUR RETIREMENT
Owning your own home can be considered a form of "forced" savings as you build equity and is a critical aspect of investing in/planning for your eventual retirement. See the chart below showing how average home equity increases with age, providing a very respectable "nest egg" for many prospective retirees. As a renter you never have the opportunity to build this "nest egg" for your retirement.
As an "investment," your home can provide tax-free profit on the sale of your home, if/when you choose to do that with the first $250,000 of profit tax free if you are single and the first $500,000 in profit tax free for married couples.
Another consideration if you have a low, fixed rate mortgage ~ you can take advantage of paying back your debt with "inflated" dollars. In other words, with fixed rate mortgages, payments never change. Yet 10, 20, 30 years from now, you pay off the same amount of debt with dollars that might not be worth as much as when you first took out the mortgage. As net worth grows, the mortgage liability becomes a smaller part of overall net worth.
As home values are projected to increase over the next five years, take a look at the following charts to see the impact of home value appreciation on family wealth on a home valued at $250,000 in January 2015. If homes appreciate by the projected mean percentage appreciation between 2015 and 2019, a family's wealth increases by almost $48,000 in that time frame.
No doubt that for many Americans, their home is one their most important financial assets providing security in retirement. Investing in your own home as a path to investing in your retirement is a great idea and a great reason to own your own home.
If you are considering purchasing a home in the Charlotte metro area, I would love an opportunity to earn your business, exceed your expectations, and to prove to you that:
Related Articles On National Homeownership Month:
Reason #1 To Own Your Own Home
- Reason #2 To Own Your Own Home
Reason #3 to Own Your Own Home
- Reason #4 to Own Your Own Home
- Reason #5 to Own Your Own Home
- Reason #6 to Own Your Own Home
- Reason #7 to Own Your Own Home
- Reason #8 to Own Your Own Home