What does it mean your family when you invest in Homeownership? Homeownership brings substantial social and financial benefits for families and communities. When I work with Homebuyers, I like to sit down and have a consultation on the process of purchasing a home beginning with the following Advantages of Homeownership:
PRIDE IN OWNERSHIP
Homeownership creates a strong sense of accomplishment, confidence, pride, and freedom. Purchasing a home is one of the biggest investment that a family will make if not the only investment. Families have to sacrifice time and money in order to purchase a home...some families have to take time to work on their credit in order to qualify for a home. Sadly, many Americans believe that they will be renters forever, so to receive keys to their first home is a sign of accomplishing a huge goal.
Once in the home...Homeowners, typically, take pride in maintaining the upkeep of the home....whether it's landscaping, updating countertops in the kitchen, changing the flooring, etc.... The direct effect of Homeownership Pride is an increase in the value of the home.
A national data set from the Joint Center for Housing Studies at Howard University, observed that children of homeowners have better home environments, high cognitive test scores, and fewer behavior problems than do children of renters.
Homeownership is deeply rooted in pride, however, a home is not only a place to be proud of, but also a place of stability and security. There truly is...no place like home.
Homeowners experience a sense of well being knowing that they have permanency. Homeowners move far less frequently than renters, and hence are embedded into the same neighborhood and community for a longer period of time.
Through Stable Housing costs, families that tend to remain in their home longer. Choosing the right loan product for you and your family will determine your affordability. Currently, interest rates are at Historic lows so in a market like this...its in your best interest to purchase a home with a fixed rate mortgage as your payments will remain the same throughout the tenure of your ownership. Remember, your mortgage payments have a fixed period of time so families can look forward to the day of it being paid off.
Neighborhoods benefit greatly when homeowners take pride in the ownership of their home. Owning a home gives owners a vested interest in the overall health of their community. When showing homebuyers homes in different neighborhoods, it is evident when there is a large percentage of homeowners that occupy the home versus those that do not occupy the home.
Stable communities positively affect family relationships, educational performance, crime rates and many other aspects of society.
Homeownership allows families to design and create a quality lifestyle, and it’s making a commitment to your community and city. As homeowners are more likely to get involved in the political decisions made in their communities.
BUILDING FAMILY WEALTH
Did you know that more Millionaires are created through Real Estate Investments than any other type of Investment Strategy? Fortune Magazine found that 97% of all wealth was either created or held in property.
Homeownership has its Tax Benefits. The interest paid on the mortgage, as well as property taxes can be deducted from your taxes. When selling, homeowners also benefit from Capital Gains tax exclusion. Meaning...home sellers may be able to exclude the profit from their taxable income. So, Individuals can exclude up to $250,000 in profit from the sale of their primary residence (or $500,000 for a married couple) as long as you have owned the home and lived in the home for a minimum of two years. Those two years do not need to be consecutive.
Real estate is an investment in your family's future, and although the market moves up and down, real estate has consistently appreciated over the years. People take pride knowing that they have put their money toward something that historically has been more stable than other investments.
Owners usually accumulate wealth in the form of home equity. As the Home Mortgage is paid, homeowners build equity (ownership interest) in their home. In essence, the monthly mortgage payments can be seen as a type of scheduled Savings Plan.
Furthermore, the home equity can be built through property appreciation. Appreciation is the increase in property value over time through increased demand or weakening supply, due to inflation, capital improvement, etc...The value of your home can also be increased By making cost effective improvements. Small improvements can sometimes deliver the best return on investment.
Most importantly, homeowners can be passed on to loved ones in the efforts to build Generational Wealth. Homeowners need to have a plan for their estate in advance to ensure that their family or loved ones are placed in a position to continue advancing towards empowerment and wealth after their death.