Why Rent When You Can Buy?
 

Turning the dream of homeownership into a reality can be both exciting and daunting at the same time. Many renters don’t realize they have the means to purchase their own home or the benefits of homeownership as compared to renting. Whether it’s building equity or getting tax advantages, owning a home can be a great investment for your future. For the majority of Americans, their home is their largest financial asset and a major player in their investment portfolio.

Building financial equity is one of the greatest advantages of owning a home. According to the National Association of REALTORS® (NAR), during the past three decades, home values have increased an average of 6.6 percent per year. If you compare this rate to that of stocks or bonds, you are investing in something with a much steadier rate of return.

NAR estimates that on average, the value of a home nearly doubles every ten years. As a homeowner you earn appreciation on your purchase price, something you cannot earn as a renter. In Illinois, the median home price has increased more than $40,000 since 2002. This value, paired with low interest rates and plentiful inventory makes now the perfect time to transition from renter to owner.

In addition to equity, homeownership has tax advantages that can help you save a great deal of money, something that renters cannot enjoy. According to the Federal Reserve Survey of Consumer Finances, the average homeowner today has 36 times the net worth of the average renter. By taking advantage of federal income tax deductions on property taxes and mortgage interest, you can save thousands annually.

Here are some other advantages to buying a home:

• Control over your property
• Freedom to decorate and landscape how you like
• Fixed mortgage payments
• Pride and comfort in owning your own home
• Housing security

Renters are the ideal clients for sellers because their offers are not dependent on selling their own home first. The Illinois Association of REALTORS Partnership for HomeOwnership has a number of mortgage and downpayment assistance programs created specifically for first-time homebuyers.

And owning a home has intangible benefits too. Owning a home adds value to communities and gives you a setting to enjoy your lifestyle with the ones you care about.