It’s everyone’s dream to own a home. Home ownership is considered to be more than just putting a roof for shelter. Buying a house is seen as foundational steps that will enable you create a generational wealth. It is also regarded as one of the most reliable and sure ways that will ensure you build financial stability and bedrock in future years and for future generations.
Today, we will be telling you how home ownership can help build wealth.
Create Forced Savings
There are people who are not that good in setting some of their income aside every month. However, most financial experts agree that having a savings backup is important for financial freedom. When paying your principal, you will be building equity which will in turn help in increasing your net worth.
Homes Value Appreciate
It is not a guarantee that any house you build in Bucksville Landing Conway SC will appreciate in value. The chances of houses appreciating are quite high when compared to it depreciating. However, there are high chances it will appreciate. According to recent research findings, the value of homes appreciated an average 3.6% every year. For example, when you purchase a house for 10,000 dollars back in 1991, today it could be around 250,000 dollars.
Perfect Tax Shelter
People usually have to pay capital gains tax whenever they earn some profit from an investment or property. However, when you make some profit from selling a house, the profit cannot be taxed. This ensures you are able to keep more money. There are other tax benefits that come with owning a home such as mortgage discount points, property taxes, mortgage insurance and mortgage interest deductions.
Ensure You Have a Stable and Fixed Housing Payment
Most renters are known to be susceptible to the ever changing rental prices which tend to increase after a short period. However, with mortgages, they can be fixed. This ensures you have a stable housing payment plan will not fluctuate. With this, you will be in a position of keeping your living cost down directing more money to your investments, savings and other platforms that will ensure you build wealth.
Owning a Home has a Greater Net Worth
Recent research reveals homeowners have up to 44 times more net worth compared to renters. The research revealed homeowners net worth stood at 231,400 dollars compared to renters net worth which as at 5,200 dollars back in 2013. Homeownership will offer one the much needed financial freedom. It is considered to be one of the greatest things you can do to help create your wealth for unforeseeable future.
The process of purchasing a house is considered to be very versatile and an important part of building wealth. However, it is advisable that you work closely with a professional real estate agent to help you get a suitable home. You risk incurring lots of unnecessary expenses or getting scammed when you decide to purchase a house by yourself without involving a professional real estate agent.