6 Reasons Why You Should Buy Your Home ASAP!
Homeownership seems more difficult than ever. For our generation, it is far more common to rent a home than to buy one. According to Statista, the number of renters in the U.S. has spiked from just 25.7 million in 1975 to 43 million last year!
Renting has serious drawbacks and actually depletes your long-term wealth. In contrast, homeownership allows for consistency in cost and enables you to build wealth. If you have a steady income, you should buy your home as soon as possible.
1. Home Ownership Builds Wealth
Imagine if every month, your monthly payments built wealth! Homeownership allows you to do that. With every mortgage payment you make, you build equity. Equity is essentially the difference between the value of your home and how much you owe on your mortgage.
You continue to build equity as your home appreciates in value. This means that eventually, you will be able to sell your property for a profit. A home can also depreciate in value, but there are ways to mitigate this.
The average home owner has 40x the wealth of a renter!
2. You Might Be Able To Afford a Mortgage Already
While many find a mortgage to be daunting, the fact is that rents are so high that most people can easily afford a mortgage instead. Why? Because, your rent most likely covers your landlord’s mortgage as well.
Instead of building wealth for your landlord, why don’t you start building wealth for yourself?
3. Stabilize Monthly Costs
Rents tend to increase by up to 10% annually, which means they double every 5-10 years. According to Zillow, the average rent increase in 2019 was $196! If your landlord won’t increase the rent while you live, they may increase it after you move. You may notice this by having to pay a higher rent at the next place.
When you become a homeowner, you never have to worry about your bank increasing your mortgage payments!
4. Get Rewarded by the US Government
Owning a home actually reduces your tax burden annually*. You may be able to take advantage of mortgage interest deductions, property tax deductions, home office expenses, renewable energy tax credits, and more! In addition, the government tends to bail out homeowners in times of economic downturn. In contrast, the government usually can’t stop your landlord from evicting you.
On top of all this, you may be able to sell your home and pocket the profits without paying capital gains taxes. It pays off to own a home!
5. You don’t need to stay in your home forever
You don’t need to stay in your home forever. If for any reason you need to move, you can rent your home to make a profit, or sell it with low transaction fees and take advantage of your home’s appreciation value. You simply can’t do this with a rental property!
6. Use Home.LLC to reach 20% down, today!
You can buy your home with us with just 5% down by getting an an investment from us to reach 20%.
This investment is not a grant or a loan – there is no debt or interest to pay back. Instead, you could share a part of the increase or decrease in the home value with us. Read more at www.home.llc
*Note: Home.LLC is not a tax advisor or a financial advisor. Consult a tax professional and/or a financial advisor to answer any questions you may have regarding your taxes and/or your portfolio.