There are many benefits to homeownership Here are the top five:
1. Savings: Owning a home is like investing in an automatic savings account. You accumulate savings in two ways. Every month, a portion of your monthly mortgage payment goes to the principal, reducing the overall loan amount. Each year, a percentage of your mortgage payment goes to paying down the principal. Second, your home appreciates over time, making it one of the best financial investments and increasing your household wealth.
2. Tax Breaks: Owning a home can unlock some of the biggest potential tax breaks most people have access to. The interest paid on a home loan is typically the largest potential deduction for middle-class Americans.
3. Equity: Buying a home is the largest investment most families will ever make and homeownership is the largest creator of wealth for Americans. It allows families to build financial security as the equity in their home increases. On a national level, home appreciation has historically risen 5-6 percent annually. When you pay a landlord, its money down the drain. When you pay a mortgage, your money is going towards something you own and is over time producing equity.
4. Price Stability: Las Vegas is a city where rent-controlled apartments do not exist. What this means is that each lease renewal could mean an increase in your rent. Owning a home provides price stability. While a rent payment can change substantially from year-to-year, you will have the same monthly payment for 30 years under a fixed-rate mortgage. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage.
5. Security: When you own, it’s yours. And it remains yours for a lifetime if you choose. You also live in a neighborhood with other homeowners, meaning more time to build relationships and friendships. Recent studies have also shown that homeowners rank themselves as healthier than their renter counterparts.
The Las Vegas Housing Market is hot right now! It’s a great time to buy. Don’t hesitate and start building equity today!