It’s been said that 90% of millionaires achieved their wealth by investing in real estate. Is this still true today? The answer, we have found, is yes. While it may not make you a millionaire, for most people, buying a home is a sound investment. Here are some of the reasons why.
Forced Investment and Savings Plan
Having a mortgage is like having a forced savings and investment plan. It can be tough for the average person to save money on a regular basis. But with a mortgage, you are forced to make a large payment every month, hundreds or thousands of dollars’ worth, which builds equity. Unlike a regular savings account, stocks or a 401k, a mortgage is something you have to pay for no matter what. In a society that pressures people to consume, spending every last dollar n “stuff,” this can be an invaluable tool to help you save rather than spend.
With one third of Americans having saved $0 for retirement, says Inc.com, this will leave most people with only Social Security or pensions to fall back on once retirement hits. But if you purchase a home when you’re younger and eventually pay off the mortgage, you can sell that home, leaving you with several hundred thousand dollars or more in cash that you can use in retirement.
But it’s not just retirement where building equity can help you. You can borrow against that equity at any time to cover things like home improvements and emergency bills. And by paying a mortgage on time every month, you can also build and improve your credit score, which in turn will make it easier to obtain financing such as loans and credit cards – all with low interest rates.
Pride of Ownership
When you own a home, you have a sense of pride in the property – a sense that this little parcel of land and the house on it is all yours. You achieved that, no one else. Many people get satisfaction out of being a homeowner, as they can tend to the landscaping, repaint the home, spend time in a backyard pool, relax on their deck, work in the garden, entertain guests, watch their kids grow, set down roots, and so much more.
A home gives you untold health, physical and emotional benefits that you just can’t get from a bank account.
Lower Tax Bill
A mortgage helps you reduce your income tax bill, as mortgage interest and property taxes are deductible.
If you’ve ever lived in an apartment, you know the lack of privacy that comes with it. With a home, you’re making an investment in your privacy because you can do what you want, wear what you want, and say what you want without the threat of neighbors or landlords spying on you.
If you’re considering home ownership, there are many benefits that come with this decision. You need an experienced real estate agent on your side to work in your best interests so you get the most out of your investment. Top of FormBottom of Form