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What Are The Financial Benefits Of Home Ownership?

If you think about it, the benefits of owning property are numerous, even outside of monetary ones.

When you take on the task of purchasing a home, you’re investing into yourself: taking stock of what you value in your possessions, research into opportunities and advocates, commitment to the process and qualification, and responsibility in improving and maintaining what you come to own.

Holistically speaking, there can be a boost to your actual health and wellbeing in owning property. You have real control over your financial and personal freedom -- which we’re about to dive into.


The physical control is obvious, right: you own your own home -- if you reside there, you are your own landlord. You set the rules, and maintain the place in a manner that either improves or preserves its value (as an asset).

You’re also locked into your mortgage, rather than being out here exposed to rent increases. That’s control and consistency of one of your Top 3 expenses -- but, you also have an asset!

You’re building equity in something physical, and improving your property to potentially make a sizable profit, should you sell it in the future. There are also borrowing options you can make against your home equity, which could be used strategically and carefully to skyrocket wealth.

If you’re intentional about several factors in your selection process, and the use of the property, home appreciation can be hugely impactful. Appreciation is affected by inflation, community development, job markets, and physical property improvement.

If you’re considering selling in the future, these factors can combine all in your favor. If you’re wanting it as rental opportunities, this is turned into profit by increasing what you charge in rent.


Lastly, we have the advantages that EVERYONE is excited about: the tax benefits of home ownership. This is where some of the highest advantages can be found, in both savings and profitability.

If you own and reside in your own property, you avoid paying Income Tax on rental income -- this is something to consider if you’re wanting to acquire properties to rent out. You have to offset tax for that passive income!

You have specific tax breaks and deductions for owning a home. The interest and property tax on your mortgage can be a deduction on your taxes. Mortgage interest for your primary residence is currently up to $750,000 for a calendar year, after the 2017 Tax Cuts & Jobs Act.

If you’re a landlord, any interest you pay on rental property loans is tax deductible. That means you’re reducing the taxable income amount from the rent you’re collecting -- it stays in pocket.

At your home closing, Closing Costs can be deducted from your taxes as well: all the smaller fees and expenses that are involved in closing. You can actually purchase something called “Mortgage Points” from your lender: to cover additional amounts at Origination or Closing (like preparation fees, inspections, notary fees, etc.) in exchange for lowering your interest rate and thus -- your monthly payments.

This is an attractive option for people who look to buy and reside in the property, so you break even on the extra cost and see the benefit.

For insurance premiums, both Mortgage Insurance for the homeowner and Rental Insurance for the Landlord are tax-deductible.

Also: the professional fees for realtor, legal, and accounting fees can be deducted to reduce your taxable income, too. We’re all about making that slice of the pie they tax, as SMALL as possible.

For my rental property owners out there, there’s tax breaks everywhere: you have meal deductions when visiting and managing your properties -- just as any business owner would.

If you hire a Property Manager to conduct all these operations for you, all their management and monthly fees can be written off. Same for your Accounting professionals, if you make it an entity.


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