Rewards of ownership

January 11, 2020

A home of your own sounds like an excellent idea. But is it a wise move? Will the benefits outweigh any financial risks? Before making your final decision, there are some facts you should know.

It can seem a little frightening and kind of like signing your life away. After all, you'll be locked into a loan payment for 15, 20 or even 30 years or more. What if something bad happens? If you're thinking about buying a home you'll be happy to know some of the many advantages of ownership.

Historically, real estate is an excellent investment. You can look forward to income tax deductions and you'll be building equity. Even though the majority of your mortgage payment goes to interest initially, the remainder is applied to the principal. Your equity in the property becomes significant over time.

If you're looking to build wealth real estate can and will be an important part of your portfolio. The chances are good that your property will appreciate in the long run. 'They ain't makin' any more of it' is a famous Will Rogers quote. If all goes well, your property will eventually be worth more than you paid for it.

Real estate is a good hedge against inflation. There are no guarantees of course, but real estate appreciation often outpaces the rate of inflation. And home ownership is looked upon favorably when you're applying for other types of credit. Talk to your Realtor and your lender to weigh your readiness to become a homeowner and take advantage of the rewards of homeownership.

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