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The advantages of owning Real Estate

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Real estate has long been a popular investment option for people looking to build wealth and secure their financial future. Whether you’re looking to purchase a home for yourself or to rent out for passive income, there are numerous benefits to owning real estate. This blog will explore some of the most compelling advantages of owning real estate.

Appreciation: Real estate values tend to appreciate over time, meaning the value of your property can increase, allowing you to sell it for more than you paid. This appreciation can provide a significant return on investment, especially if you hold onto the property for an extended period.

Tax Benefits: Owning real estate can provide substantial tax benefits, such as deductions for mortgage interest, property taxes, and depreciation. These savings can significantly reduce your tax bill and provide additional financial benefits.

Equity Build-Up: Every time you make a mortgage payment, you increase the amount of equity you have in your property. Over time, this equity can grow into a substantial sum, which can be used for various purposes, such as a down payment on another property, investment opportunities, or as a source of emergency funds.

Stable Housing Costs: Renting a property can be unpredictable, with landlords increasing the rent each year, but owning a home provides stability in terms of housing costs. Your mortgage payments remain fixed for the duration of your mortgage term, allowing you to budget and plan for your housing expenses.

Forced Savings: Owning a property requires you to save for a down payment and make monthly mortgage payments. This forced savings can help you build wealth over time and provide a sense of pride and accomplishment in ownership.

Rentals: Owning a rental property can provide passive income, allowing you to earn money while you sleep. Rentals can provide a steady income stream, and property values and rental rates are generally more stable than the stock market, making it a low-risk investment option.

In conclusion, owning real estate provides various financial, tax, and personal benefits, making it an attractive option for those looking to build wealth and secure their financial future. Whether you’re looking to purchase a home for yourself or to rent out for passive income, real estate is a solid investment option worth considering.

Home Value = what price a buyer is willing to pay and the price a seller is willing to accept.

“How to Increase Your Family Wealth by Paying for Housing”

 

Everyone should realize that unless you live somewhere rent-free, you are paying a mortgage – either yours or your landlord’s. Buying provides a form of ‘forced savings’ that allows you to use your monthly housing costs to increase your family’s wealth.

Every month you pay your mortgage, you pay off a portion of the debt you took to purchase your home. Therefore, you own a little bit more of your home every month in the form of home equity. As your home’s value increases, you also gain home equity.

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists. It asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

The latest data from their Q4 2018 Survey revealed that home prices are expected to round out the year 5.8% higher than they were in January. For the next five years, home values will appreciate by an average of nearly 3% a year.

This is still great news for homeowners!

For example, let’s assume a young couple purchases a $250,000 home in January. Simply through their home appreciating, those homeowners can build their home equity by nearly $40,000 over the next five years.

How to Simply Increase Your Family Wealth by Paying for Housing | Simplifying the Market

Let’s look at the potential equity gained over the same period of time at some higher price points:

How to Simply Increase Your Family Wealth by Paying for Housing | Simplifying the Market

In many cases, home equity is a large portion of a family’s overall net worth.

 

87% of homeownefamily’seld their properties 7-10 years had a positive housing equity gain since 1989.

87% of home owners who held their properties for 7-10 years had a positive housing equity gain since 1989.

What it feels like to own real estate:

“As homeowners discover, living in an owned home feels different from living in a rented home. It’s not just that an owner can personalize It’s a space; it touches a chord even more fundamental than that.

Homeownership enhances the longing for self-determination at the heart of the American Dream. First-time homeowners, young or old, radiate not only pride but also a sense of arrival, a sense of being where they belong. It cannot be duplicated by owning a 99-year lease.”

“The American Dream Of Homeownership Is Still Very Much Alive”

 

Bottom Line

If your plan for 2023 include” entering the housing market to purchase a home, whether it’s your first or your fifth, let’s get together to make your plan a reality.

Jay Bru

480-466-4917

jay@jaybrugroup.com

 

Home Value = what price a buyer is willing to pay and the price a seller is willing to accept.

“How to Increase Your Family Wealth by Paying for Housing”

 

Everyone should realize that unless you live somewhere rent-free, you are paying a mortgage – either yours or your landlord’s. Buying provides a form of ‘forced savings’ that allows you to use your monthly housing costs to increase your family’s wealth.

Every month you pay your mortgage, you pay off a portion of the debt you took to purchase your home. Therefore, you own a little bit more of your home every month in the form of home equity. As your home’s value increases, you also gain home equity.

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists. It asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

The latest data from their Q4 2018 Survey revealed that home prices are expected to round out the year 5.8% higher than they were in January. For the next five years, home values will appreciate by an average of nearly 3% a year.

This is still great news for homeowners!

For example, let’s assume a young couple purchases a $250,000 home in January. Simply through their home appreciating, those homeowners can build their home equity by nearly $40,000 over the next five years.

How to Simply Increase Your Family Wealth by Paying for Housing | Simplifying the Market

Let’s look at the potential equity gained over the same period of time at some higher price points:

How to Simply Increase Your Family Wealth by Paying for Housing | Simplifying the Market

In many cases, home equity is a large portion of a family’s overall net worth.

 

87% of homeownefamily’seld their properties 7-10 years had a positive housing equity gain since 1989.

87% of home owners who held their properties for 7-10 years had a positive housing equity gain since 1989.

What it feels like to own real estate:

“As homeowners discover, living in an owned home feels different from living in a rented home. It’s not just that an owner can personalize It’s a space; it touches a chord even more fundamental than that.

Homeownership enhances the longing for self-determination at the heart of the American Dream. First-time homeowners, young or old, radiate not only pride but also a sense of arrival, a sense of being where they belong. It cannot be duplicated by owning a 99-year lease.”

“The American Dream Of Homeownership Is Still Very Much Alive”

 

Bottom Line

If your plan for 2023 include” entering the housing market to purchase a home, whether it’s your first or your fifth, let’s get together to make your plan a reality.

Jay Bru

480-466-4917

jay@jaybrugroup.com

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