While we love to celebrate the joys of homeownership year round, June is officially National Homeownership Month! This is a month to promote the benefits of homeownership and recommit to creating opportunities for future homeowners. The Department of Housing and Urban Development has committed to providing affordable, accessible, and equitable homeownership for Americans nationwide.
The Benefits of Homeownership
Start Paying Yourself
When you’re renting, 100% of your monthly payment is going into someone else’s pocket. When you own a home, your money is working for you instead of someone else. We often think we can’t afford to own our own home, and the fear of being responsible for repairs can seem overwhelming. But if you take all the emotion out of it and look at the numbers — homeownership isn’t quite so daunting. For example, if you’re renting an apartment for $1,300 per month, with that same $1,300 monthly payment, you could afford a $200,000 home with as little as 5% down.
Equity Builds Wealth
Equity is the difference between what your home is worth and what you owe. Over time your home’s value appreciates while you pay down your mortgage, which increases your equity and personal wealth simultaneously! That’s the beauty of homeownership! The equity you earn from your first home helps you move up to a second home with even more purchase power. On average, real estate in the US grows by 3.5% per year in value. This means a $200,000 house purchased today could be worth $280,000 in 10 years.
Increased Quality of Life
Homeownership has significant benefits besides just the financial ones — it can impact your overall quality of life. According to research, 93% of homeowners said owning a home made them happier. Homeowners also tend to build stronger family units, have higher self-esteem and life satisfaction, and are more involved in charitable and civic activity.
One of the huge benefits of homeownership is the stability that you and your family can gain from it. Owning a home allows you to put down roots in an area and be part of a community. Your neighborhood and greater community can be an essential resource for almost anything you might need.
You also gain financial stability and peace of mind when you own a home. If you rent or have rented in the past, you know that rent prices typically increase over time, so if you live in an apartment for 10 years, it could cost you significantly more money to live there over the years. On the other hand, your mortgage payment is tied to a fixed interest rate, which means your monthly mortgage payment will not change.*
Flexibility & Customization
Often when you’re renting, landlords have an extensive list of things you can’t do: no pets, no hanging anything on the walls, and don’t even think about painting! When you own your home, you have the freedom to customize your home any way you’d like!
Homeowners may be able to deduct both mortgage interest** and property taxes from their annual income taxes, and tax benefits for homeownership are found on both a state and federal level. Additionally, some repairs, renovations, or energy efficient additions may be tax incentivized.
Ready to Become a First Time Home Buyer?
If you’re interested in buying a home (even if you don’t think you have the right finances), we can help! Treadstone offers a variety of down payment assistance programs — even 0% down mortgages. For Michigan first-time home buyers, down payment assistance is also readily available.
Ready to get started? From downtown condos to suburban homes, we do it all.
*taxes and insurance may vary
**up to $1 million. Consult a tax specialist for details. Treadstone Funding and its employees are not CPAs or financial advisors. Not financial advice. All information provided is for educational purposes only. Please contact us for an exact quote and for more information on fees and terms.