Here in America we talk a lot about freedom, and for many that idea of “freedom” has a huge emphasis on being financially stable, and even wealthy. One of the best ways to ensure that freedom and start to build wealth is through home ownership.
In 2019, the US Census Bureau put out statistics stating that the median net worth of homeowners is 80 times larger than renters. If you’re currently renting, you know that each month your payments are going to an outside company or owner and you’re not reaping any of the benefits. Basically, you’re throwing your money away. Plus, landlords can raise your rent and add on additional fees as they see fit. With homeownership, your monthly mortgage payments can be set at a fixed-rate, not changing over time even if your home increases in value or you start making more money.
And, speaking of budgets, owning a home encourages you to set aside money into a savings account to be used for house emergencies and updates. A savings account in itself is another great way to accumulate wealth because it can build interest over time.
Buying a home is one of the smartest investments you can make. If you’ve been paying attention to the market recently, you know that home prices have been rising due to such a high demand of buyers. This means that when you buy a home, you will typically see the home value increase, especially if you make updates along the way, ensuring wealth and stability for your future. Home values have appreciated an average of 3.6% each year since 1991, according to the Federal Housing Finance Agency’s House Price Index.
Home ownership can also work in your favor financially when it comes to taxes. When it comes to your mortgage, you can get tax deductions on interest, discount points, and insurance. And if you decide to sell your home, you can’t be taxed on profits made, although there are some limitations.
So, if you’re thinking about building your wealth and buying a home, we can help! Whether you are looking for your forever home or an investment property, buying a home in the Longmont or Northern Colorado area means you’ll need someone to help you zero in on available properties pronto and to help you move quickly and nimbly. That’s us! Learn more and get started on the Buyer’s Journey here.