Coming of age in a financial recession left many millennials fearful of entering the housing market. Now, with a more stable economy and the younger generation established in their careers, buying a home is once again a viable reality. If you fall into this age group, you may be wondering if it's a wise decision to take the next step toward homeownership. It can be one of the smartest investment choices you ever make.
3 Benefits of Buying a Home
1. Avoid Throwing Money Away
The biggest reason to move from renter to homeowner is money. As a tenant, every penny of your monthly rent goes to your landlord which doesn't provide you with any chance for a return on your investment. When you buy a home, those funds go toward the mortgage, so you build equity to use later in life.
2. Reduce Your Tax Liability
Buying a home now can also help you reduce your tax liability. While rent is a non-deductible expense, a percentage of the interest you pay on your house every year can be deducted from your taxes. You can then use your savings to increase the equity further by making updates or completing renovations, some of which may also be tax- deductible if they're green energy focused.
3. Secure Your Financial Future
Investing in real estate also offers a lucrative return down the road. If you choose a location that's becoming more desirable to buyers, you can list your home for substantially higher than you bought it. If you've also made updates to increase its value, like a kitchen remodel, then the price can reflect that too. When you decide to sell, you will make a significant return on your initial investment and use that toward other opportunities or to fund your retirement.
If you're ready to make the move from renter to a homeowner, turn to the trusted professionals at RE/MAX Homes & Hills Realty in Black River Falls, WI. With nearly two decades of industry experience, the full-service real estate company offers a personalized approach to buying a home by curating a list of budget-friendly properties that meet your unique needs. Begin your house hunt today by calling (715) 284-0610, and learn more about what sets this team apart by visiting them online.