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5 Benefits of Homeownership

It’s not enough to rent the American dream; we want to own it. And there’s nothing more essential to the American dream than the idea of home and homeownership. Owning a home means stability, financial success, and the opportunity to contribute to the community.

As we grow up, however, things change, and we may wonder if homeownership has become an unattainable dream. At Mirabilis Homes, we hold fast to the idea of making homeownership possible for everyone, no matter what the market looks like.

However, we need to clarify precisely what are the benefits of homeownership. As housing prices across the country seem to be on the rise, some people are finding themselves forced to rent for the rest of their lives. But rental prices aren’t stable either, and many people choose to buy.

That’s a difficult decision. Buying a home can come with risks and obstacles, but it’s still the best way to settle down. Homeownership has numerous financial and social benefits, which we’ll explore in this article. So let’s find out why it’s worth investing in a home.



Photo by RODNAE Productions from Pexels


Homeownership Trends

Before we get into the benefits of homeownership, let’s take a quick look at some historical trends. According to the National Association of Realtors (NAR), less than half of Americans owned a home at the beginning of the 20th century.


When the Great Depression hit, the homeownership rate dropped from 45% to 42%. In the early 1950s, the homeownership rate rose again to 55% and continued to increase through the end of the 20th century so that by 2005 nearly 70% of Americans were homeowners.


There was a minor setback during the recession, but today over 60% of Americans own one or more homes. This historically growing trend shows that more and more people can afford and prefer homeownership. But why? What’s so appealing about it? Let’s see:


1. Let’s Talk Money!


Who does not love money? And, of course, home ownership has some advantages to offer in this regard. Buying a home may be a costly investment, but it also provides an opportunity to build wealth and build long-term savings.
While you are paying off your monthly mortgage, you are also building equity and increasing the value of your property. It may seem like you are paying rent, but there’s a big difference. When you pay rent, you are paying your landlord’s mortgage. When you pay your own mortgage, you increase your equity/wealth.
Equity building also works as a long-term investment. Once you pay off your mortgage, there are several ways to tap into the equity in your home. Many Americans save for retirement by using equity, which has been shown to peak at or near retirement age. Simply put, buying a home equals increasing your financial stability.


2. Expenses and Credit History

Owning a home means being able to make reasonable estimates of the cost of the monthly mortgage and living expenses. On the other hand, renting is a constant head-to-head race with uncertainty. At any time, your landlord can decide to raise your rent by any amount.
Your monthly mortgage could increase, but that’s entirely up to you. You can change your mortgage terms or leave them the same throughout the life of your mortgage. When you join Mirabilis Homes’ co-ownership program, you are the only one who determines your ownership share.
Another benefit of buying a home is that your credit score will strengthen over time as you consistently make monthly mortgage payments. With a solid credit history, obtaining other financing forms becomes easier.
For example, you can buy a new car or invest in another property. Buying a home can improve your credit score, and making timely mortgage payments will boost your FICO score. When lenders want to decide how much money to lend you, your income record is the first thing they consider.
All in all, good payment history is a sign of your financial credibility. Remember, your FICO score goes up as your mortgage balance goes down. So there’s hardly a better way to improve your credit score.

3. Personal and Social Benefits

As tempting as the financial benefits may sound, there are other things in life that we need to take care of. Homeownership has its own social aspects and personal advantages that make it even more attractive.
First, buying a home is one of the most tangible ways to get a sense of accomplishment. Also, homeownership is a practical way to let go of all the anxiety associated with constantly moving and settling down. This can have a positive impact on your mental health and community.
If being socially active matters to you, homeownership is your gateway to civic participation. Homeowners often stay in an area for an extended period, contributing to and enjoying the stability of a neighborhood. They build bonds with the people around them and actively contribute to maintaining their properties and the surrounding areas.
Also, once you know every little detail of your neighborhood, you can start a thriving local business that is much needed in the area. This financial knowledge will be passed on to future generations, gradually creating a family-run business.
Even if opening a business does not fit your personality type, you can use your property as a home office. Since the pandemic seems to be going on a little longer, we should do everything we can to adapt. Many companies have already implemented permanent work-from-home policies.
Homeowners can easily create the perfect work environment to maximize productivity and comfort. Not to mention renting an extra bedroom or area designated for an office.

4. Health and Security

Homeowners enjoy higher control over their lives, have higher self-esteem, and are happier than renters. With mental stability comes physical well-being. A study from NAR shows that homeowners have better health compared to non-homeowners.
But the sense of control isn’t limited to their own property. Because of their attachment to the area, they’ve every reason to be wary of crime in the neighborhood. Property crime is less likely to occur in areas with a high percentage of homeowners than in markets dominated by rental properties.
The privacy of owning your own home isn’t comparable to that of a rental property. You don’t have to worry about sharing rooms with other tenants. Instead of being dictated by your landlord when and who can enter your home, you, as the homeowner, are the ones making the decisions.
And you can do just about anything you want with your home. The freedom to customize is nonexistent for a renter. But as a homeowner, you can tackle a new renovation project every month until the house looks exactly how you envisioned it. If done carefully, adding a personal touch to a home can also increase the property’s value.

5. Tax Benefits

The tax benefits of homeownership in the United States date back to the early 1910s. The mortgage interest tax deduction is probably the biggest incentive. This means that all interest paid on a mortgage is tax-deductible, and homeowners can reduce their taxable income by deducting mortgage interest.
Depending on the jurisdiction, you may qualify for various property tax deductions and further reduce your taxable income. Under certain circumstances, you may be exempt from capital gains tax after selling a property up to $250,000.
Another tax break is the interest on your loan. As long as your loan does not exceed $1 million, you can deduct the amount you paid in interest in the previous year. This is especially useful because interest makes up most of your mortgage’s monthly payments in the early years.
Sometimes, you can deduct your private mortgage insurance and property taxes, which likely make up a large portion of your monthly loan payment.
Even if you sell the property, you can avoid some of the taxes on the profit you make if you meet the ownership and residency requirements. You must have owned the property for at least two years or lived in it for two of the last five years.

You Deserve to Be a Homeowner


The benefits of homeownership are so extensive that no one should be denied the opportunity to own a home. The American dream should be available to everyone. That’s why we do what we do at Mirabilis Homes. Our mission is to help everyone become a homeowner and live the way they wish. This is at the heart of our collective mission as an organization.

Knowing that many people are not financially able to afford a mortgage, we do everything in our power to change that perspective. We have learned many lessons from our years of experience in the housing industry, including the importance of strategic vision. We believe that with the right planning and enough support, anyone can be put in a position to buy a home.

If you cannot make a substantial down payment today, that is not a problem. We have developed the INTRO plan to give you a chance at the dream of homeownership in the future.


Now it’s up to you to take a step, and you know where to start: Contact us!


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