Tag Archive for: homeownership

Should I Rent or Should I Own

Do you ask yourself the question should I rent or should I own? If you are looking for a smart investment then owning is the way to go. Here are some things to think about when weighing owning versus renting.

Whether you are renting or purchasing your money matters!  Research where to get the most return for your money.2-753 Bedico Creek Custom Paver Entryway The amount housing prices go up will greatly affect your return.  There are many resources to tap into where you can find great information about retirement, saving for college, investing and online financial services.

Look at a mortgage on a home as a means of saving money. A great advantage for homeownership is the ability to deduct your mortgage interest from your taxable income.

“Another primary advantage is the opportunity to build wealth via earned equity that is not available through renting,” says Daren Blomquist, senior vice president for ATTOM Data Solutions. “We know that home values do not always go up. But over the long term, they have consistently trended higher.”

Many people think of stocks, bonds, savings accounts, retirement accounts and cd’s as solid ways to save your hard-earned income but there can be challenges with these as well.  You might plan on and begin to set away a certain amount of income to one of these investments each month, however a life-changing event such as aging parents, growing children, job loss or health issues can wreak havoc on this plan.

Right now, a mortgage is more affordable than rent.   According to the U.S. Department of Housing and Urban 20-324 TerraBella Custom Hot Tub & PoolDevelopment, Bureau of Labor Statistics and Realty Trac, fair market rent on a 3-bedroom home is less affordable than a mortgage on a median-priced home in a majority of the counties across America.  Monthly rent takes up 38.6% of average wages where a mortgage only requires 36.6%.  Fair market rents across America are rising faster than the average wages.

Blomquist comments, “Today’s near record low homeownership rate, combined with low inventory of rental property, have combined to push rental rates higher during the housing recovery. In the majority of markets, home price appreciation has been outpaced by growth in rental rates.”

Remember it is not just a financial choice but an emotional choice as well when making a decision on your primary dwelling. Where we live makes a huge difference in our everyday life. From use of space to a lush backyard garden, to the installation of a fountain, outdoor kitchen, firepit, or home pool, Homeowners can enjoy more privacy and flexibility to make changes to their living space.

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NAHB States Homeownership Is One of the Highest Investments

According to over 80% of Americans surveyed by the National Association of Home Builders (NAHB), homeownership is one of the highest and best investments in not only a financial future but also an emotional and mental future as well.  Home provides security in investment, security in living (the physical walls of the home), security in family (many couples dream of owning a home to rear their children), and security in equity in the 2-Lot 34 Autumn Creek Family Roomfuture.  Homes are one of the largest financial investments that can be made that will absolutely return money to a homeowner in the form of equity loans that can be taken out of the house.

Most everyone has heard of the “American Dream” and Leonard Boswell, former U.S. Representative, described it best when he said, “The American Dream is one of success, home ownership, college education for one’s children, and have a secure job to provide these and other goals.” The (NAHB) believes this still holds true in today’s current housing market.   According to a polling done in July on over 2,800 registered voters “…..most Americans believe that owning a home remains an integral part of the American Dream and that policymakers need to take active steps to encourage and protect homeownership,” said NAHB Chairman Ed Brady.

The polling was done to explore the American peoples’ perspective on homeownership, housing production, and government programs that assist in homeownership.  Four out of five Americans still factor homeownership into the “American Dream’” believing it is still a worthy investment.  The key outcomes of the study were as follows: 82% of Americans feel that owning a home is the highest of investments, 81% of 18-29 year old Americans are 17-Lot 207 Fully Bricked Back Patioplanning to purchase a new home, 72% agree that the government providing tax incentives help fuel homeownership, 46% feel that now is a good time to purchase a new house and 36% of the Americans surveyed planned to purchase a new home within the next three years.

So with that said, homeownership is still a big part of the “American Dream” and to end with another quote, Maya Angelou describes homeownership as this, “The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.”

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Discover the Value of Homeownership in America

The value of homeownership has just been assigned a number based on information regarding homeowners in 2013 in the United State.  Owning your own home in America can save $100 billion in tax savings and deductions. Statistics showed that only approximately 11.4% of Americans who had a mortgage by owning a home that they occupied in 2013 did not take advantage of being a homeowner by deducting the mortgage interest that they paid from their federal taxes according to the Joint Committee on Taxation (JCT) and National Association of Home2-54 Maison du Lac Exterior 2 Builders (NAHB) analysis.

It cannot be emphasized enough the huge advantages of becoming a home owner in today’s economy.  In addition to the $296.2 billion that was claimed on Americans’ taxes, there was also the amount of $174.3 billion in real estate taxes that were claimed on taxes as well. Overall, people who owned homes in the U.S. in 2013 were able to trim their tax bills by over $100 billion dollars.  Mortgage interest deductions accounted for $72.4 billion in savings on taxes while real estate taxes equaled $30.2 billion.

These numbers don’t include individual state programs for making improvements and installing energy efficient, “green” products in their homes.  These deductions are specialized each year by both the state and federal government and typically have timelines and requirements on the amount of money that can be deducted.  The bottom line is that if you own your own home, you have a significantly better chance of saving money on certain 1-Lot 52 Windermere Remodel Overviewhome improvements than if you were renting your home.

Another advantage to owning your own home is that on-time mortgage payments will vastly improve your credit.  Just by owning real estate, your credit score will improve as soon you close on your home and log your first mortgage payment.  With better credit, you can expand your opportunities for loans and investments, thereby creating even better credit for yourself and your family.  As you pay more and more principle on your mortgage payments, you will see your home equity rise as well.  You can use an equity line of credit to make improvements to your home (and get those tax deductions!) which also increases your home’s value.  Real estate can be one of your greatest assets that continually increases in value, appreciation, equity, and opportunity if it is handled correctly as one of your greatest investments.  So, what are you waiting for – discover the possibilities of becoming a homeowner today!

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