Although people have specific personal reasons for wanting to own their own home, after more than 15 years as a licensed New York State real estate seller, I have come to believe that there are at least five common reasons and motivations that most have for wanting to do so. Since, for most, home equity represents their number one financial asset, doesn’t it make sense to know as much as possible and to be smart and proactive during this period? With that in mind, this article will attempt to briefly consider, examine, review, and discuss 5 of these reasons, which many claim are the keys, in terms of why they expect to own their home.
1. The American Dream – Pride in Homeownership: For many, their concept of the American Dream includes home ownership. Personally, emotionally, mentally, etc., it often makes a difference in many people’s lives! There’s something known as pride in home ownership (home ownership), and while it’s hard to pin down exactly what this means and represents, there seems to be an inner feeling that makes all the difference—for the better!
2. Tax Considerations: Although, in some regions/areas of this country, the Tax Reform Act of 2017 significantly minimized this, there are still some tax benefits for home ownership. If an individual’s financial numbers indicate that they would benefit, by itemizing, instead of taking the Standard Deduction, the ability to deduct mortgage interest, real estate taxes, etc. (although real estate taxes are capped at $10,000), make home ownership even more attractive. After all, we can’t deduct any part of the rent!
3. Accumulated capital: Historically, real estate has been able to maintain, and/or exceed, the cost of living. When we rent, all the dollars go to the landlord, and we don’t create equity! On the other hand, when we own, over time, often a significant degree of equity is created.
4. The ability to customize / customize: Tenants are limited, in regards to, being able to personalize and/or personalize their dwelling. Owners, within local regulations and limitations, can customize it to their tastes, needs, goals, priorities, and aspirations!
5. Sense of belonging: Few tenants feel a true sense of belonging, because they are simply occupying someone else’s premises and paying rent to do so! Their leases are generally for one or two years, unlike ownership, where we have a sense of permanent enjoyment and belonging.
Most of us like the feeling of having our own home. Learn about the advantages and disadvantages and determine what is best for you!