It’s tax season! This is the time of the year to be reminded of all the things that we can use as tax write-offs in order to get a little extra cash in our wallets. The tax system is set up in a way to encourage investing in ourselves, our businesses, and our future. I want to talk about one way to really benefit largely from this system and give advice on why homeownership is a financially wise decision.
There are so many benefits to owning a home. The obvious one is having a place to live that is truly yours. Some not-so-evident perks to those who have never owned a home are the financial benefits. Sure, we’ve all heard saying like “it’s good to build equity” and “real estate is a good investment for your future.” What I’d like to talk about is more specifically why these sayings are true and what they really mean.
Buying may seem like the expensive option when you have a choice between that and renting. No doubt, it very well might be more expensive in the short term. However, in the long term, buying is definitely the way to go. The first reason why is because each month when you write that check, you aren’t paying for someone else’s mortgage payment. You are essentially paying yourself by putting money away and thus building equity bit by bit each month.
Other financial benefits of owning a home are tax-related. Many people don’t understand the amount of write-offs possible when you are a homeowner. These write-offs translate into cash directly back in your pocket! Firstly, you can write off all of the interest paid on your home. This is especially important during the first few years of homeownership because those are the years most people pay the highest amount of interest. Secondly, you can write off property taxes. Again, this means more cash back to you during tax season! Who doesn’t love the sound of that?
For more details on why homeownership is financially beneficial, check out Forbes’ article: 7 Benefits of Homeownwership This Tax Season