It’s already June folks, and while this month is typically known for being Pride Month, it’s also National Homeownership Month! This month is meant to highlight the valuable role that homeownership plays in building strong communities, promoting stability and wealth-building, and fostering a sense of pride and belonging. It serves as an opportunity to educate and empower people about the benefits and responsibilities of owning a home. So, in honor of June being National Homeownership Month, we’d like to talk about the many benefits to homeownership!
Stability and Comfort
As L. Frank Baum wrote in the Wizard of Oz “There’s no place like home” and we absolutely agree. Owning your own home provides you with stability and control over your living situation. Homeownership offers stability in terms of your monthly housing costs for sure. With a fixed-rate mortgage, your principal and interest payments stay constant over the loan term. These consistent payments will help you with budgeting and financial planning in the long term. When you’re a homeowner, you also get to customize the space you live in to fit your needs and really make it your own—a freedom you don’t have when renting. Renovations can make a home reflect your style and even increase its resale value.
Equity
And speaking of value, buying a home allows you to build your own equity over time. As you make mortgage payments, you gradually increase your ownership stake in the property. Building equity can serve as a long-term investment and potentially provide you with financial security. Real estate has historically been a valuable investment for people. There’s never a guarantee, but properties typically appreciate in value over time, making the purchase of a home a solid investment.
Tax Benefits
Being a homeowner makes you eligible for quite a few tax benefits too! Mortgage interest and property tax payments are often tax-deductible, reducing your overall tax liability. Additionally, if you sell your primary residence and meet certain criteria, you may be eligible for capital gains tax exclusions.
Sense of Community
Unlike renting, homeownership offers a sense of permanence and the ability to establish roots in a community. Owning a home allows you to stay in one place for a long time, which gives you the opportunity to develop relationships with your neighbors, take part in neighborhood events, and contribute to your local community.
Planning Ahead
Homeownership can be an essential part of retirement and long-term financial planning too. As you pay off your mortgage, your housing costs decrease, which will create more financial stability for you during your retirement.
With so many benefits to homeownership, we can see why there is a whole month dedicated to it. If you’re already a homeowner, congrats and make sure to celebrate your accomplishment this month! If you’re beginning your journey to homeownership, we are cheering for you! Our team here at Placer Title wishes you all a Happy National Homeownership Month and would like to remind you that we are here with the best title and escrow services around when you are ready to close on your next home—contact us today to get started!