What Is the True Value of Owning a Home?
Deciding to buy a home means different things to various buyers. For some, the dream of homeownership fosters the need to buy as soon as possible. For others, it takes longer to make that decision, whether due to lifestyle or financial reasons.
But what happens when a buyer is on the fence? You could buy a home now, but should you? To make that decision, consider some of the most important reasons why buyers report wanting to buy a home, as noted by the National Association of Realtors.
Value Increase
Home values historically increase over the long term. From the end of 2000 to the end of 2023, for example, the median home price in the U.S. rose from $172,900 to $417,700. While a variety of factors contributed to that, and periods of home value drops can occur, over the long term, real estate is a good investment for many. Over time, you could sell your home for more than you paid for it.
Owning a home helps you save on your taxes. The U.S. Tax Code allows homeowners to deduct a substantial portion of their mortgage interest for the year from their taxable income. That means you’re reducing the amount of taxes you pay each year by owning a home.
Equity Affordability
Another core reason to own a home is equity, the portion of a home’s value that is owned by the owner free and clear. With each payment, equity increases, resulting in a substantial value over time. If there is a need to renovate or tap into funds for other reasons, that equity often offers a considerably lower interest rate than most personal loans.
A Loan Helps Build Credit
Buying a home with a mortgage helps build the owner’s credit score. Over time, this means better borrowing power due to consistent, on-time payments. Real people benefit from these benefits.
Savings Opportunity
As one of the largest assets that many people own throughout their lifetime, their home can become a valuable savings tool for the future. As mortgage payments are paid down and the debt owed, equity grows, creating a significant asset that you could sell to fund retirement down the road.
Looking for Guidance on Homeownership?
Home buying offers benefits. However, it is critical for both homebuyers to weigh those benefits against the costs and limitations that can sometimes apply. Having a lender that’s resourceful, transparent, and ready to support the unique needs of each buyer is a must.
At Southern Trust Mortgage, we remain your dedicated team to help fund the purchase of a home. Whether you are not sure about homeownership right now or you need help for a client who needs support in securing their first home loan, we are here to guide you.
Contact Southern Trust Mortgage now for a free, no-obligation quote and the support you need when buying your next home.
