Although individuals after 15+ years as a licensed New York state real estate salesman have specific, personal reasons for owning their own home, I believe there are, at least five, common reasons and motivations that most have for doing so . Since for most the value of their home is their greatest financial asset, doesn’t it make sense to know as much as possible and be smart and proactive at this time? With that in mind, this article will attempt to briefly consider, examine, review and discuss 5 of these reasons many say are the most important when it comes to why they hope to own their home.
1. The American Dream – Pride in Homeownership: For many, their concept of the American Dream includes home ownership! Personally, emotionally, mentally etc. it often makes a difference in many people’s lives! There is something that is referred to as the pride of owning a home (home ownership) and while it is difficult to pinpoint exactly what this means and represents, there seems to be an inner sense that it is making a difference, for the better !
2. Tax aspects: Although this has been significantly minimized in some regions/districts of this country by the 2017 Tax Reform Act, there are still some tax advantages to home ownership. If a person’s financials indicate they would benefit from the breakdown rather than taking the standard deduction, the possibility of mortgage interest, property taxes, etc. property becomes even more attractive. After all, we cannot deduct part of the rent!
3. Build equity: Historically, real estate has been able to match, match and/or exceed the cost of living. When we rent, all dollars go to the landlord and we don’t build equity! On the other hand, when we own, a significant amount of equity is often created over time!
4. The ability to customize/personalize: Renters are able to customize and/or personalize their apartment. Owners can personalize it to their tastes, needs, goals, priorities and aspirations within local regulations and restrictions!
5. sense of belonging: Few renters really feel like they belong because they are just occupying someone else’s space and paying rent for it! Their leases generally last a year or two as opposed to ownership where we have a sense of enduring enjoyment and belonging!
Most of us like the feeling of owning a home! Know the pros and cons and decide what’s best for you!