Homeownership Benefits Times Three

“There’s no place like home.” This quote, which was first introduced to the masses in the 1900s by L. Frank Baum (the author behind the most beloved movie of all time: “The Wizard of Oz”), couldn’t be any truer than it is today.

When an individual or a family finds a place to call home, one where they can lay down roots and anchor all of their hopes and dreams, it often provides them with the ability to build a brighter and more hopeful future.

As renters transition into homeowners they no longer have to imagine what it means to own a piece of the American dream. They know. It means they can provide stability for their family, even, in the midst of hardship.

It means they can immediately seize control of their life, their finances, and their future. It means they can say good-bye to landlords and hello to many homeownership benefits.

It means they should be proud. They just purchased their first home. They just made the biggest financial investment ever. They now have a place to go ‘home’ to each and every night that is theirs and theirs alone.

Best of all, they have many financial benefits, including the following three:

#1 – The Potential to Build Wealth Over Time

Owning a home is both one of the scariest and most rewarding opportunities available. This sentiment was shared – no; drilled into our heads – by our parents, and their parents before that.

But, in the face of a recession the likes of which many of us have never faced before, as everyone is still recovering from the aftershocks experienced by lost income and depleted savings, this benefit is worth repeating again and again.

Through homeownership you have the potential to build up your net worth, to build wealth, by accumulating equity and writing off deductions each tax season – as long as you remain current on your monthly mortgage payments.

#2 – Monthly Gains in Equity

Home equity, at least according to Investopedia, is the value of homeownership that represents your home’s current market value minus any remaining mortgage payments.

As you make your monthly mortgage payments to your lending institution, preferably on time, your mortgage’s remaining balance decreases thus allowing your home equity to grow.

#3 – Deducting Eligible Expenses

As a homeowner, you are eligible to deduct certain expenses each tax season including in most cases your mortgage’s interest rate, some closing costs, and real estate property taxes.*

*Please consult with a tax professional for more information on which mortgage expenses you can deduct come tax season.*