There are clear financial benefits to owning a home, especially in today’s housing market. Whether it be increasing equity, the chance to build your net worth, or appreciating home values. These are just a few of the advantages to highlight. If you are currently renting, it is never too early to think about how homeownership can propel you toward a stronger future and greater financial security.
Each year, households across the country marinate in the idea of renting for another year or pulling the trigger and purchasing a home. They take a look at their earnings and savings and decide what makes the most financial sense for them. In this situation, you have to take into consideration monthly housing costs, tax advantages, and other expenses. In most cases, it’s still more affordable to own then rent in most of the country.
When you own a home, you are building equity. According to CoreLogic, in their latest Homeowner Equity Insights Report, the average homeowner gained $17,000 in equity in just the last year alone.
Home prices are on the rise, which means if homes continue to appreciate, homeowners will increase their wealth in 2021 through increased equity.
As you evaluate your plans for the year ahead, be sure to consider the equity benefits of home price appreciation as you weight the advantages of owning a home over renting. When you do, you may just find that this is the perfect time to purchase a home.