The American Dream of homeownership lives on in New Jersey and beyond! Recent reports show that the US homeownership rate rebounded from recent lows and continues to head in the right direction. Personal reasons to own differ for each buyer, but basic similarities persist. Today Team Nest Builder wants to talk about the top 5 financial reasons buying that New Jersey home is good for you:
Homeownership act as forced savings – Paying your mortgage each month allows you to build equity in your home to tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college. As a renter, you guarantee that your landlord gains that equity.
Homeownership provides tax savings – Owning your own home allows you to save on taxes. You may be able to deduct your mortgage interest, property taxes, and profits from selling your home, but make sure to always check with your accountant first to determine which tax advantages apply to you in your area.
Homeownership allows you to lock in your monthly housing cost – When you purchase your home with a fixed-rate mortgage, you lock in your monthly housing cost for the next 5, 15, or 30 years. Interest rates remained around 4% all year, marking some of the lowest rates in history. The value of your home continues to rise with inflation, but your monthly costs don’t.
Buying a home is cheaper than renting – According to the latest report from Trulia, it’s now 37.4% less expensive to buy a home of your own than to rent in the US. That number varies throughout the country but ranges from 6% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.
No other investment lets you live inside of it – You can choose to invest your money in gold or the stock market, but you still need somewhere to live. In a home that you own, wake up every morning knowing your investment is gaining value while providing you a safe place to live.
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