5 Reasons Becoming a Homeowner Makes ‘Cents’
The American Dream of owning a home in Sacramento is alive and kicking. It has been reported that homeownership rate has rebounded from recent lows and headed in the right direction. Personal reasons to own look different for each buyer but there are many basic similarities. Today I want to talk to you about the top 5 financial reasons you should own your home in Sacramento.
1. Homeownership is a form of forced savings – Paying your mortgage each month allows you to build equity in your home that you can tap into later in life for renovations, to pay off high-interest credit card debt, or even send child to college. As a renter, you guarantee that your landlord is the person with that equity.
2. Homeownership provides tax savings – One way to save on taxes is to own your own home. You maybe able to deduct your mortgage interest, property taxes and profits from selling your home but to make sure to always check with your accountant first to find out which tax advantages apply to you in your area.
Homeownership allows you to lock in your monthly housing cost – When you purchase your home with a fixed-rate mortgage, you lock in your monthly housing cost for the next 5, 15 or 30 years. Interest rates have remained around 4% all year, making some of the lowest rates in history. The value of your home will continue to rise with inflation but your monthly costs will not.
Buying a home is cheaper than renting – According to the latest report from the Trulia, it is now 37.4% less expensive to buy a home of your own than to rent in the US. That number varies throughout the country but ranges from 6% cheaper in San Jose CA to 57% cheaper in Detroit, MI. If you’re renting a home in Sacramento you’re basically just throwing money away. Well, your throwing money into someone else’s pockets
5. No other investments lets you live inside of it – You can choose to invest your money in gold or the stock market but you will still need somewhere to live. In a home that you own, you can wake up every morning knowing that your investment is gaining value while providing you a safe place to live.
Bottom Line Before you sign another lease, perhaps you should sit with a Realtor to better understand all of your options.
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