Benefits of Homeownership
A 2013 Federal Reserve Study shows homeowners’s net worth is 31 times that of renters. That gap is expected to widen in 2016 to 45 times that of renters. Accumulation of wealth is the biggest benefit of home ownership. However, there are other perks:
- Freedom to make changes – You can paint and decorate the way you see fit. You can remodel. You can even have a garden.
- Stability – Rents are projected to increase during the next five years. So if you rent you can expect increases within the next five years. On the other hand, homeowners who have a fixed rate mortgage will have the same mortgage payment.
- Tax benefits – Mortgage interest and taxes are deductible for homeowners. They are not deductible for renters.
Student debt and High rent
Student debt has posed problems for college graduates as they have found it difficult to qualify for loans. In addition, graduates who have this debt experience limitations in saving for a downpayment.
The home you can afford now may not be your dream home but it would be the stepping stone toward your dream home later on. It is projected that our local real estate market will be thriving for the next 5 years. That means rising prices and rising rents. Wouldn’t it be great if you could convert your housing payment from a rent check to mortgage check and start accumulating equity?
Programs that can help
In Middle Tennessee THDA provides assurance to first time homebuyers. The money they provide for downpayment assistance and /or closing costs with the Great Choice home loan will be available as long as the borrower lives in the home. If and when the homeowner decides to move, or refinance, the loan will come due. A first time homebuyer can learn more about who qualifies and how. Typically, a person who has not owned a home in 3 years will qualify as a first time buyer.
Take the first step in exploring your options.
Read the Original Article Here: Your Buyers’ Nemesis: Student Debt, High Rent