Investing in residential real estate is a topic I’m very passionate about. I’ve recently been conducting market studies for past clients who I’ve helped purchase a property and who are now looking to sell that same property. The most exciting part is getting to share the news that they’re in an equity position to sell their home.
That’s just one of the many upsides to owning a home, and today I’ll spell out four more.
The first thing I tell potential homeowners is you’re paying a mortgage no matter what. The difference is that if you’re renting, the money you’re paying that could be going toward your own mortgage is just going straight toward your landlord’s mortgage—without any of the benefits. Why not pay your own mortgage instead of someone else’s?
Secondly, homeownership means forced savings. In truth, a lot of us struggle to save money, but owning a home leaves us with no other option but to start saving, which will only pay off in the long run.
Another factor that often goes unconsidered is that owning a home creates a hedge against inflation. When you buy a home at today’s interest rates, your payment will be fixed at that amount for the life of your loan.
If you’re a renter, on the other hand, rent increases are an inevitability—it’s just a matter of when. Instead of worrying about paying higher rates each year, purchasing a home allows you to lock in your payment and never see it go up.
Last but certainly not least, think about the great tax incentives. Now, the government does set limits on how far our write-offs can go, but the tax benefits are still there.
Financially speaking, you cannot beat the numbers that I see each year when I help clients invest in residential real estate. Seeing clients acquire exponentially grow their wealth and equity for themselves and their family brings me a lot of joy.
If you have any questions about owning a home or about real estate in general, feel free to let me know. As I said, serving your residential real estate needs is a passion of ours, and we’d love to have a conversation about it with you!