8 Ways You Can Benefit from Homeownership

In honor of National Homeownership Month, here are 8 ways you can benefit from owning a home:

1. Stability & security

As a renter, your life plans are dependent on what your landlord decides to do with their house or apartment. In Arizona, where there is no rent control, you can end up priced out of your home, or your landlord may decide they want to sell. Although a new owner must honor your agreed-upon lease terms, things can get complicated under new ownership.

As a homeowner, it's fully yours to enjoy and you don’t have to worry about what a landlord is going to do when your lease is up.

2. Building equity

As you pay down your mortgage — and if values continue to rise — you're building equity in your home. That equity can then be leveraged for various other purposes, such as taking out a Home Equity Line of Credit (HELoC) to fund other necessities or investments.

3. Customization and personalization

Homeownership allows you to customize your space to your preferences. The amount of freedom you have may be impacted by HOAs and city ordinances, but homeowners can renovate and make improvements that renters are legally kept from doing. Any improvements you make can also increase the value of your home (instead of building your landlord's equity).

4. Appreciation of value

Historically, real estate in the U.S. has appreciated in value over time. According to a Federal Housing Finance Agency report, for the first quarter of 2022 all 50 states and D.C. had accumulated a national average of 18.7% increase in price over the past year. Of course a nearly 19% increase year-over-year is not sustainable, but it does reflect recent trends.

While nothing is ever guaranteed, owning a home most likely means you'll benefit from the value of your property increasing over time — and renting does not.

5. Tax advantages

In the U.S., homeowners are able to save on taxes by benefiting from tax deductions on payments such as mortgage interest and property tax. On the flip side, there are no tax benefits for being a renter.

6. Potential rental income

Owning a home means you may be able to rent out part of your home to supplement your income. Whether you have a vacant room, basement, or casita — renting out part of your space can help cover your mortgage and other expenses.

7. Community

While of course renting doesn't mean that you aren't an integral part of your community, it does mean that you remaining in your space is reliant on your landlord renewing your lease.

When you own a home, you get to set down roots and stay there as long as you want.

8. Building generational wealth

Although "generational wealth" has become a bit of a buzzword, it has major implications for future homebuyers. Because of the significant financial investment buying a home requires, many people are unable to become homeowners until they inherit a home or downpayment, or have a friend or family member gift or lend them money. By building equity in a home, you're building wealth that can benefit your family for generations to come.

Interested in starting the search for your first home? Contact Julia.

Julia Van Valkenburg, Realtor

OMNI Homes International

julia@buyselltucsonhomes.com

520-275-3514

Start your home search today!