Every market and every prospective buyer are different, but here are some benefits of buying a home:
1. Equity In the past 20 years, the median sales price of existing single-family homes rose 81 percent. For those who plan to stay in the same place for at least five to seven years, the increase in value can often offset the costs of buying the home. When that equity grows, the homeowner may be able to borrow against it for major purchases or educational expenses.
2. Predictable payments Rent payments can increase steadily or suddenly. With a fixed-rate mortgage, buyers pay the same amount each month no matter how many years they live in the home.
3. Tax deductions Many homebuyers can deduct mortgage interest and property taxes on their tax returns. Those who work at home may also be able to take home-office deductions.
4. Control Unlike renters, homeowners can paint their walls any color they want and don’t need to ask a landlord for permission to hang pictures or renovate. For many, that’s priceless.
5. Pride of ownership Buying a home is an investment, but also so much more. It’s a lifestyle choice and continues to be part of the American dream.
What to tell clients:
The majority of the approximately 80 million Millennials have not yet made the move toward homeownership. You can help make them aware of the advantages of buying a home and encourage them to speak with a Mortgage Advisor, who can help them understand what they might be able to afford.