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Raymond Garcia's Blog

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The Value of Homeownership

 I just went to a seminar where the Massachusetts Association of Realtors put into perspective what we all, already knew about homeownership but sometimes forget.
Our American dream is still alive and we are all making it happen as a society, we're all involved and we all depend on each other to make it happen.  The following is a quote:
The Value of Homeownership

Homeownership provides shelter and security to families, and fosters involvement in community life as well as participation in democratic institutions. Homeownership also provides important social and economic benefits.

A long-term investment
A home appreciates at a typical annual rate of five percent and the homeowner who made a cash down payment of 10 percent generally will receive a 94 percent return on that cash after owning the home only three years, 225 percent after five years and 623 percent after 10 years. (Harvard University’s Joint Center for Housing Studies)

Builds wealth
The median net worth of a renter household is $4,800, while the median net worth of a homeowner household is $171,700.  (Federal Reserve Survey of Consumer Finances)

Tax breaks
Tax advantages to homeownership include: interest payments on mortgages and property taxes in most cases; home equity loans which may also be used to consolidate debt, thereby making all the debt interest tax deductible. (Get more information on the tax benefits of being a homeowner from your tax preparer or the IRS)

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