7 Reasons to Own a Home Right Now

Considering buying your first home? Thinking of making the switch from being a perpetual renter to a wealth-building mogul? It all starts with owning your own home.

To help you make better financial decisions in your life, here are 7 reasons why you should own a home right now:

1) Tax benefits.

The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.

 

2) Appreciation.

Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®.  The recent housing crisis has caused some to question the long-term value of real estate, but even in the most recent 10 years, which included quite a few very bad years for housing, values are still up 7.0 percent on a cumulative basis. In addition, the number of U.S. households is expected to rise 10 to15 percent over the next decade, creating continued high demand for housing.

 

3) Equity.

Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

 

4) Savings.

Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

 

5) Predictability.

Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will likely increase.

 

6) Freedom.

The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.

 

7) Stability.

Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity. 

Nico Hohman

Nico Hohman is the broker/owner of Hohman Homes, a residential real estate brokerage based in Tampa, Fla. Nico is also a contributing author to Realtor Magazine and Inman News, the innovative news source for the real estate industry. Nico has contributed his time and talents to better the standards of the real estate industry and the local community by leading and serving on committees at Greater Tampa Realtors, Emerge Tampa Bay, the University of Florida School of Construction Management Alumni Council, Toastmasters International, Nativity Catholic School, and Johns Hopkins All Children's Hospital Guild. Plus, every fall, Coach Hohman is the Head Golf Coach at Jesuit High School of Tampa.

 

Since he began practicing full time in the residential real estate in the fall of 2014, Nico has been involved in the transaction and management of over 100 properties with a total value of nearly $20,000,000.

 

With a degree in Construction Management from the University of Florida and past experience in the home building and remodeling industries, Nico focuses on helping homebuyers find and purchase new construction homes. He also helps home sellers looking to sell their properties that also require significant renovation.