Last Updated on April 27, 2021 by Maggie Sutton
We have all heard financial experts speak about the incredible benefits of owning a home, and we agree with them. From tax benefits to capital gains, our team at Homes For Heroes wants to break down the top eight benefits of owning a home for you, and explain just how these benefits will work for you and your family long term. Including, but not limited to, getting a home warranty to help keep the home protected and assist in having the homeowners save financially.
Also- don’t forget that our real estate specialists are eager and ready to help you in the home buying process. If you’re just getting started, or even further along but need some help- sign up for our free service. You’ll get an amazing advocate to walk you through the process, and you’ll save money in the meantime! Click here to sign up.
If you are not yet a homeowner but are looking to buy a home, Homes For Heroes is thrilled to walk alongside you through the home buying process. We work with you if you are military (active duty, veteran or reserve), a first responder, a teacher, a law enforcement officer, or healthcare professional. We not only take all of the guesswork out of buying a home, but we save you money on your home purchase.
Giving Back to Heroes
With every home purchased by a Hero using one of our trusted real estate specialists, we donate to our Heroes Foundation. That generous donation is used to help a hero just like you move closer to their goal of homeownership.
With just one phone call, we will match you with one of our licensed, trusted and committed real estate agents and get you on your way to being a homeowner. Before we do that, we want to make sure you understand the benefits of owning a home. We have broken down the top eight benefits to owning a home for you in the list below.
If purchasing a new home is in your future, whether it is due to a move or to increase your wealth, we are waiting for your call today. We are excited to get to work for you. We appreciate your commitment and sacrifice to your nation and your community, and we want to show that appreciation by saving you money and making homeownership an available and rewarding experience.
Taxes, Taxes, Taxes
Taxes might be a dirty word to some, but to most homeowners the tax benefits to homeownership are beloved. When you own your home versus renting it, you can deduct things like your mortgage interest and property taxes from your income taxes. These deductions add up to significant savings every year.
Inflation, What Inflation?
When the cost of rent rises, guess who won’t be affected by it? That’s right, homeowners. When you buy your home, you don’t have to worry about pesky things like inflation and housing costs ballooning. The sooner you purchase your home, the better. You don’t want to wait until housing prices have skyrocketed to buy your home because if you do, you could face astronomical interest rates that will make it difficult for you to stay in your home long term. The sooner you move toward homeownership, the better.
In general, most homes will see their value increase as time goes on. If you purchase your home for $150,000 and the annual appreciation rate is about 3%, in 30 years your home will be worth $449,043. That is an incredible increase in the value of your home. You won’t get that kind of return on your investment if you are renting, providing yet another reason owning a home is a much better option than renting.
Up That Credit Score
Did you know that 35% of your credit score depends on your debt payment history? This score is also known as your FICO score. That score is what lenders use to determine how much money they will loan you and what your terms and rates will be. When you own a home and are making your monthly mortgage payments on time, you will see this number increase. As your credit score grows, you open up the door to better loan terms and interest rates on your future purchases.
Another significant advantage of owning a home are these magical things called capital gains. The Taxpayer Relief Act of 1997 states that homeowners who are single are exempt from paying any capital gains tax on the first $250,000 of gain. For married people that number increases to $500,000. If you are a homeowner, you are eligible to take advantage of this exemption every two years.
You might not realize it, but when you own your home and are making your monthly mortgage payments on time, you are saving tons of money on interest and fees. Just paying your mortgage on time saves you money. How awesome is that? If you want to really watch that savings plan grow, consider contributing more to your monthly payment. Adding to your payment any amount that exceeds your combined monthly interest, principal, insurance, and taxes is the key. Make these additional contributions and watch the savings add up.
When you purchase your home, you will know exactly what your payment will be if you choose to go with a fixed-rate amortized mortgage for the lifetime of your home loan. You can set a consistent budget for your home loan. When you know what to expect, it makes it a lot easier to budget and to save money.
The math is simple when you own a home and your home’s value increases. When it is time for you to move and sell your home, you reap the benefits. If you live in a rental house and the owner decides to sell, you walk away with nothing. The longer you are a homeowner, the better it is for you, and the higher your profits will be.
We are excited that you are considering home ownership. We know the benefits for you and your family will be great. When you choose to work with Homes For Heroes, and one of our many trusted real estate specialists, you are in good company. We know how much you give to others and we want to do what we can to give back to you.
By serving, you help others. By saving, you do too. We’re dedicated to fueling a circle of giving. Communities of heroes are helped when you buy, sell or refinance a home through Homes for Heroes. Each time you save, we donate to organizations that serve heroes like you. Just when you thought you’d given it all, you find more to give.