Why baby why

I've played on both sides of the home ownership fence. In fact, you could say I've played on 3 different sides of the fence. I've been a homeowner, a renter and a landlord. None of those were more satisfying than playing the role of landlord. I know I've said it many times before, but there is nothing quite like the privilege of having someone else paying down your mortgage on your behalf! But today we're simply going to be focused on home ownership overall. Renting has its place. I'm renting as we speak! But the benefits of home ownership far outweigh those of renting and we're going to highlight some of those for you today. We're heading into the busier season (current crazy times notwithstanding) so let's get started.

First are the tax benefits. As an investment property owner (duplex) I was able to deduct every ounce of paint, most of the tools and basically everything I poured into that property from my taxes. That was awesome. But even as a homeowner, you are allowed to deduct the mortgage interest, your property taxes and some of the other costs associated with buying a home. When April rolls around (or July in this year's case!) you will appreciate the savings.

Speaking of "appreciation", that is something that you will never be able to take advantage of as a renter. According to the National Association of REALTORSⓇ Since 1972 (through 2014) median single family home prices have increased on average 5.2% each year. There is also the idea of demand. We have always said they are not making any more land. Along with that, the number of US households is expected to increase by about 10 or 15 percent over the next decade. There will be no shortage of demand for homes. That should lead to a continually stable (and increasingly strong?) housing market.

Part of that appreciation is the fact that you are continually contributing money towards your mortgage. So not only is your home appreciating on its own (as noted above), your monthly payments also contribute "equity" to the property. So the longer you own (and pay on) it, the more equity you have and the more valuable it is to you. The problem I have always had with being a renter is that every month, I'm just giving someone else that same money that could be going towards equity in MY home, not theirs.

Owning a home is also much like a "forced" savings account. The beauty of the equity we noted above is that when you sell the home, you are able to take up to $250,000 (or $500,000 for a couple) as "profit" or "gains" on the sale of the home without paying any federal income tax. So even if the payments are challenging (especially during rough times like now) it still pays off in the end with you either owning a home that is worth more than you paid OR making a profit on the sale of the home and not owing taxes.

Often under appreciated, one of the more awesome benefits of owning your own home is the freedom you have. You can do simple updates such as painting walls or replacing fixtures without having to consult anyone. You also have the freedom to tackle larger renovations such as paving the driveway, moving interior walls around or even building an entire addition or garage. I never took advantage of this benefit when I owned my home in Lincoln. I was more worried about the resale so I kept things pretty vanilla. Once I purchase a home that I intend to live in for more than a year or two, I will let my freak flag fly and do some fun remodeling. I can't wait!

The last benefit to home ownership is the dual benefit of predictability and stability. Your rent payments can fluctuate with the economy and will most certainly rise over time. Your mortgage is fixed and may even get lower. Your property taxes and insurance may rise, but the default payment will stay the same at the very least. "Putting down roots by buying a home creates the stability that is critical for building strong ties to your community and is a huge benefit to your kids' social relationships and feeling of belonging," notes Badger Realty agent, Deirdre Lorway. "The predictability and stability of home ownership is something not to be taken lightly," she continued.

I don't know about you, but stability is something I'm craving these days. I love my current living situation and have no intention of changing it anytime soon. I will certainly own a home in the future, but for now I'm content and happy where I am. If you are itching for that sense of calm, perhaps homeownership is a good path for you to explore. All the reasons noted above are positive markers that should be nudging you in that direction. Just imagine all the updates, painting and remodeling you could be doing now as you're "sheltering in place".