Ep 004 - The 7 Financial Benefits of Home Ownership

June 2, 2017

The benefits of owning a home are many.  Let us look at simply the financial benefits of home ownership.


  1. .Homeownership Builds Wealth over time. Start with something you can afford in order to build wealth over time.  You need to be in it for the long hall therefore you have to budget for unexpected things.  Do not start in over your head.  Just because you can does not mean you should
  1. You Build Equity Every Month. By paying down the principle balance you owe less and therefore have more equity
  1. You Reap Mortgage Tax Deduction Benefits
  1. Mortgage deduction
  2. Closing costs deduction
  3. Property Tax deduction
  1. Tax Deductions on Home Equity Lines. Interest deduction will allow you to shift Credit Card debt to Heloc thereby paying a lower rate and making the debt tax deductable
  1. You Get a Capital Gains Exclusion. If you live in the home for more than two years you should qualify.   When you sell you can keep more of your money up to 250k if single 500k if married
  1. A Mortgage Is Like a Forced Savings Plan Paying the mortgage increase equity every month, like a forced savings plan. You are being forced to save
  1. Long Term, Buying Is Cheaper than Renting. First you are not throwing money away.  Second the portion of interest you pay goes down every month eventually your monthly payment will be lower than rent
  1. Gaining wealth long term and short term gain. Buying a home gives you all of the equity.  So $200,000 with a 10% gain over 4 years gives you a total Value $292,820.  So gross profit $92,820 for a 4 years investment making payment that you would have made renting anyway. You have got to live somewhere you might as well make money doing it



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