If you’ve ever wondered about the benefits of owning a home, you’re not the only one. Home buyers in Colorado are experiencing the benefits of home ownership firsthand by buying new places, driving median home prices to record highs in August. According to the Colorado Association of Realtors, single-family home sales in Colorado set new records, rising 15% from June and 21% from July 2019. And statewide, the median home price jumped 4.5% in one month, to $443,925.
In addition, home buyers are looking for ways to finance their new homes. Metro Denver experienced the highest level of mortgage originations since the fall of 2005, according to ATTOM Data Solutions. With historically low interest rates even during a pandemic, mortgage originations were up 40.3% from Q1 and 65% from Q2 of 2019.
So why are so many Coloradans choosing to buy homes? From financial gains to greater privacy, there are a number of benefits that make home ownership more appealing than renting. Check out the seven benefits below.
- A good long-term investment: In most cases, when you buy a home, the asset you’re purchasing will appreciate in value over time. This can be a smart way to create a solid financial foundation and position the cash you’ve invested to grow.
- Tax benefits: With home ownership, you get favorable tax treatment in the shape of deductions. In most cases, you can deduct your home mortgage interest, as well as the money you pay in property taxes each year, and some closing costs when buying a home.
- Building equity: The equity in your home is the difference between what you sell it for and what you owe. The equity grows as you pay down the mortgage. When there is significant equity in your home, that equity can act as a financial cushion against unexpected events. If you face a financial challenge, you may be able to access your home’s equity with a home equity loan or line of credit.
- Consistent monthly payments: A home’s mortgage payment is the fixed cost of the principal and interest until the loan is paid off. A homeowner can plan a monthly budget around this payment and doesn’t have to worry about the payment increasing, which is a more common concern for renters.
- Stability: Owning a home often creates a sense of permanence for homeowners. If you buy a home and have a family, a home can serve as a stable haven for both children and adults. And being a homeowner in a neighborhood often leads to new friendships and a sense of community.
- The perfect retreat: When you want to get away from the world, a home is the ideal place to lie low. While your house is a good place to social distance, you can also make being home bound more interesting. If you feel a new fire pit would be the perfect addition to the patio, you can add it because every inch of the house, yard, garage and patio are yours!
- Convenient, remote home office: While many companies expect their employees to return to offices when the pandemic has passed, a growing number of technology companies are planning for “work from home” to be the new normal. According to Adam Ozimek, chief economist of Upwork, as much as a fifth of the workforce may continue to work remotely after the crisis. As CEOs recognize the financial benefit of a smaller corporate footprint, WFH employees will place greater value on their homes as the location of their home workplace.
In today’s world, the stability and financial benefits of home ownership shouldn’t be overlooked. To learn more about how you can get started purchasing a home, contact the Spectra Mortgage team through social media, email or phone at 303-468-1985.