Homeownership Builds Your Wealth over Time
Owning a home in New Hampshire can provide a number of long-term benefits that renting simply can't match. One of the biggest advantages of homeownership is the potential for appreciation. Over time, the value of a home can increase, providing homeowners with a valuable asset that can be sold or used as collateral for loans. Additionally, owning a home can provide a sense of stability and belonging that renting often can't match.
When it comes to tax benefits, you can take advantage of deductions for mortgage interest and property taxes. These deductions can save you thousands of dollars each year on their taxes, making homeownership more affordable in the long run.
To get a sense of the long-term value of owning a home, let's consider the case of a $400,000 home. If we assume that the home appreciates at a rate of 3% per year and that you take advantage of the deductions for mortgage interest and property taxes, the total value of the home after 20 years would be approximately $873,000.
In contrast, if the same homeowner had chosen to rent a home for the same 20 year period, they would have spent approximately $960,000 on rent, with no long-term asset to show for it.
In addition to the long-term benefits of appreciation and tax savings, owning a home also allows homeowners to build equity over time. Equity is the difference between the value of a home and the amount still owed on the mortgage. As homeowners make payments on their mortgage, they build equity in their home.
In conclusion, owning a home can provide a number of long-term benefits, including appreciation and tax savings. However, it's important to carefully consider the costs and responsibilities of homeownership before making the decision to buy. A $400,000 home purchased with a 20 year mortgage, assuming appreciation at 3% per year and taking advantage of tax deductions, can grow to $873,000, while renting would cost $960,000.
Some Highlights
If you’re thinking of buying a home this year, be sure to factor in the long-term benefits of homeownership.
On average, nationwide, home prices appreciated by 288.7% over the last 32 years. That means homeowners grow their net worth significantly in the long term.
Homeownership wins over time. Let’s connect so you can start your homebuying journey today.