May 8, 2017 | Bob Myers

Homeownership will always be a part of the American Dream. There are advantages to owning your own home (educational, health, social)  that far transcend any economic impact. However, we want to look at  several of the financial advantages of homeownership in today’s post.

1. Buying is Cheaper Than Renting

The results of the latest Rent vs. Buy Report  from Trulia show that homeownership remains cheaper than renting with a traditional  30-year fixed rate mortgage in the 100 largest metro areas in the  United States. The report reveals that:
“Interest rates have remained low, and even though home prices have  appreciated around the country, they haven’t greatly outpaced rental  appreciation…Nationally, rates would have to reach 9.1% for renting to  be cheaper than buying. Rates haven’t been that high since January of  1995, according to Freddie Mac.”

2. Homeownership “Forces” You to Save

According to, homeownership is a great way to save. Their advice is quite simple:
“Homeownership is a “forced” savings account because you own the  home, you have no choice – that monthly housing cost has got to be paid  no matter what…Homeownership can be an outstanding way to force yourself  to be more frugal in the rest of your spending so that you can save and  build equity in your home.”

3. Homeownership Offers Several Tax Deductions

According to the Tax Policy Center’s Briefing Book -“A citizen's guide to the fascinating (though often complex) elements of the federal Tax System” - there are several tax advantages to homeownership. Here are three:
  1. Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage.
  2. Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.
  3. Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale.

4. Experts Expect Home Price Appreciation to Continue

Every quarter, Pulsenomics surveys a nationwide panel of over  one hundred economists, real estate experts, and investment & market  strategists about where they believe prices are headed over the next  five years. They then average the projections of all 100 experts into a  single number.  Over the next five years, home prices are expected to appreciate 3.22%  per year on average and to grow by 17.3% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey .

Bottom Line

Some are afraid that home values may have already peaked. However, we  believe that purchasing a home now will prove to be a sound financial  decision for years to come.  

My team and I  are real estate experts in Montgomery County and the surrounding Metro  area. When buying or selling a home, please consider us your resource  for all things real estate. If you need referrals for obtaining a home  loan or are refinancing, want a recommendation on a home warranty, need a  service or just have a home related question, please give me a call at  301-910-9910 or email me at


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