3 Benefits of Home Ownership People Keep Forgetting (The Top Real Estate Brokerage Los Angeles Tells All)

Home ownership has forever been a part of the great American dream. We grow up expecting to own a home at some point—without really giving any consideration to why we are going to do it. Because when you take on such a major financial responsibility, you need to know the benefits.

So that’s what we’re outlining in this article: the benefits of home ownership. As the residential real estate brokerage Los Angeles trusts, we’ve seen these benefits a million times—and it never fails to inspire us to keep doing what we do!

#1. You Reap Tax Deduction Benefits

First up: mortgage deduction. Thanks to the tax code, homeowners can deduct the interest on their mortgage from their tax bill. This is huge. Interest payments can often be the lion’s share of your mortgage repayment in the first few years of home ownership, so anything you can do to minimize them puts more money into your investment.

Secondly: closing deductions. When you buy your home, you can claim the origination fees on your loan—even if they were paid by the seller. When origination fees can be as high as 1%, this kind of deduction is a major coup for new homeowners.

You can also do financially savvy things like qualify for capital gains exclusion when you eventually sell up, or move your credit card debts to your home equity loan, pay a lower interest rate, and get a deduction on the interest.

If it all sounds a little baffling right now—don’t be intimidated. Talk to the real estate brokerage Los Angeles can count on. Our team are happy to demonstrate how a little financial literacy can turn your home ownership experience into a valuable education.

#2. Investment and Appreciation

Appreciation is a term you’ll hear a lot as a homeowner. It’s the increase in the value of your home over time. Effectively, if you stay in your home long-term, and sell smart, you should make a profit. The reason is simple: residential real estate prices tend to go up. There are always dips in the market, which reflect changes in demand, but there is an overall upward trend in housing.

What does this all mean??Well, in simple terms, by buying a home, you’re living in a long-term investment. Without doing a single thing to your home, the land is still increasing in value.

#3. You Are In Control

Doesn’t that have a nice ring to it? With home ownership, this third benefit is an absolute guarantee.

You control where you save money: by installing energy-saving appliances and smart thermostats. By harnessing solar power to bring down the sky-high utility costs that come with living in L.A.

You’re also in control of how you grow your investment.

You can add value by making improvements—renovating the kitchen or bathroom, for example. Painting, improving the gardens, refinishing the floors—all of these can potentially create more equity in your home.

Finally, you’re in control of how you live in your home.

Want a dog??There’s no landlord to tell you that you can’t have one. Want a salmon-pink bedroom? It might not be a draw for buyers, but if you’re the one living in it and you’re the one sleeping in it, who is going to tell you “no”?

Feeling inspired? Take the next step with?Pacific Playa Realty, and let us get you into the home of your dreams—anywhere in Los Angeles.