Every family has a list of important dates. We celebrate birthdays, anniversaries, pet adoptions ... and the list goes on. For 64.4 percent of households in the United States, this list includes the day they became a home owner for the first time!
Why is this date important? Home ownership is not just a roof over your head! It represents shelter, stability, wealth, and pride! For decades, home ownership has been an important part of the American Dream!
However, many question if the next generation see the same benefits of home ownership as their predecessors.
In case we have forgotten, some of those benefits are:
1. Educational Achievement: Home ownership has a positive impact on academic achievement, including reading and math performance in children 3-12 years old.
2. Civic Participation: "Owning a home means owning a part of the neighborhood." Home owners have a stronger connection to their neighborhood and are more committed to volunteer.
3. Health Benefits: Adjusting for a range of demographic, socioeconomic and housing-related characteristics, home owners have a substantial health advantage over renters.
4. Public Assistance: The report shows 47% of home owners use their home equity credit lines to help pay other debts, diminishing their need for public assistance.
5. Property Maintenance and Improvement: A well-maintained home not only generates benefits through consumption and safety, but a high-quality structure also raises mental health.
6. Pride of Ownership: This place is uniquely "yours." You can customize it according to your likes and personality.
In addition to financial benefits, home ownership also brings significant social benefits. These not only pertain to the family, but extend to the communities, the state, and the country!
Buying a home is an investment in your future!
1. Appreciation: On average, home prices are appreciating annually at a rate of 3.6%. This helps to create a safety net.
2. Forced Savings: Your mortgage is like a forced savings plan! With each payment, you are reducing the principle of your loan.
3. Home Equity: Home ownership builds equity every single month. You can later use that equity to start a business, send your children to college, etc.
4. Net Worth: A home owners' net worth is 44x greater than renters! This gives you the financial freedom to invest.
5. Stability: Rent prices increase 4% annually! A fixed mortgage payment allows you to save for future projects and guard against inflation.
6. Tax Benefits: The government has created tax benefits to encourage customers to purchase. (Talk to your CPA to see which benefits apply to you).
Home ownership is and will always be part of the American Dream! There are many financial and non-financial benefits to take advantage of when owning a home. If owning a home is part of your dream, contact a local real estate professional to help you with the process!