Homeownership comes with many responsibilities. You’ll be obligated to pay more taxes, maintenance and upkeep, insurance, prepare for emergencies, keep financial records, and more. It’s natural for us to constantly remind new and aspiring homeowners of all of these responsibilities. But there are many homeowner benefits as well.
Benefits of homeownership:
- Shelter—this is one of the primary essentials for life; keeping a roof over one’s head. Being a homeowner means never having to worry about finding shelter.
- Security—a home provides physical and financial protection for you and your family. Knowing your kids are safe in your home makes all of the responsibilities of homeownership worth it.
- Control—a homeowner can decide how the house will look, whether and how to improve the property, etc. When it’s your house, you get to make decorating choices without having to get anyone else’s approval.
- Finances—a home is a great investment if you’re in it for the long term. The idea isn’t to get rich quick by “flipping” a property. If you invest in your home over a lifetime, and you own it outright, then you have a place to live rent-free during your retirement years. The importance of this can’t be overstated.
- Accrual—if you make improvements to your home, you reap the benefits in increased property value. Everything you do to make your house better has the potential to reward you financially.
- Taxes—there are many property tax obligations that drain homeowners, especially retirees whose homes have increased in value over the years. But those who are still paying off their mortgages get a mortgage interest deduction to make buying a home a bit easier.
- Equity—if you build up equity in your home, then you have stored value you can access during an emergency, either through a home equity line of credit (HELOC) or second mortgage. You should ONLY tap into your home’s equity during a bona fide emergency. During your retirement years, a Reverse Mortgage can be a great option to turn your home’s equity into a source of income.
- Credit—having a mortgage in good standing can be great for your credit score. You’ll have far fewer credit troubles if you prove yourself to be a responsible homeowner.
Homeownership is the greatest source of wealth accumulation for Americans. Nearly one third of American wealth is in home equity. This is a benefit anyone can attain if they take the steps to become homeowners.
If you’re trying to become a homeowner, or if you’re trying to save the home you already have from foreclosure, call us today and get HUD-approved homeownership counseling and education.