Buying a house is still part of the American Dream. There are several great benefits of buying a house that you should be aware of. While today’s housing market and the significant lack of available credit makes owning a home more difficult, it is not impossible to purchase a home.
With good credit and down payment, you can find a mortgage to purchase a new home. Renting should not be your default option when there are so many great benefits of buying a house.
Four Great Benefits Of Buying A House
One of the greatest benefits of buying a house is that it forces you into a set savings plan. Every payment that you make on your mortgage builds equity in your home. Far too many Americans do not save enough money in their emergency fund or for their retirement. The savings rates in America were over 5% during the recent recession, but the savings rates in America have since started begun dropping down to under 2% again since the economy has been recovering.
While home values are not rising like they were before 2007, continuing to pay your mortgage over thirty years until your home is paid off will force you to save the value of the home when people are not saving enough outside of their home values.
Buying a home helps you build wealth. For most Americans, your home’s value is one of the largest portions of your net worth. Like forcing you to save, building wealth through real estate is a one of the best benefits of buying a house.
Despite the recent housing crisis, home prices have historically risen 4% annual since 1960. Having equity in your home also allows you a lot of flexibility as well. Many people take the equity in their home and leverage it into more real estate which continues to help you build wealth.
Saving on Taxes
The mortgage interest rate tax deduction is one of the greatest benefits of owning a home in America. Mortgage interest rate tax deduction is not the only savings that you receive on your taxes when owning a home. There is also generous capital gains exclusion when you sell your house. If you are married and file a joint tax return, you can exclude $500,000 in capital gains from the sale of your primary home.
Sense of Pride and Community
One thing that you receive from owning a home instead of renting is a pride in ownership. There is something special about homeownership. There is a sense of pride that you receive when you own your own home. There is also a sense of community that is one of the benefits of buying a house.
Homeowners more than renters tend to be involved with their neighborhoods, know their neighbors, serve on boards or committees to help the neighborhood, and are involved in what is going on in your community.
Did I miss any of the benefits of buying a house? Do you think I’m off the mark? I’d love to hear your thoughts in the comment section.