Perks of Homeownership

Hey Damsels!

Today we are going to discuss perhaps one of the easiest industries to get involved in to earn passive income, REAL ESTATE! As millennials reach the ‘home buying age and the average matrimonial age increases, more Damsel’s are opting for homeownership before the ring! It seems like NOW is the time you should be thinking about buying your first home rather than focusing on ballin’ out in Dubai, although #Dubai2018Goals.

I have to admit, the idea of being single AF and a homeowner LS is flat out terrifying! But not like “No Becky don’t go into the woods on Friday the 13th to see what that sound was” terrifying. Its hearing the clicks going up a hill on a rollercoaster this might be fun or I might throw up and ruin my day terrifying but also exhilarating. 

I have compiled a list of Home Ownership Perks to encourage you to get some skin in the real estate investment game!

1. Level 3 adulthood + PRIDE:

Being in possession of a piece of land is a privilege that belongs to a few. Not much compares to the pride in owning your first home, especially if you purchased it on your own! Those lucky individuals all seem to be have been initiated into this higher level of adulthood fraternity. The homeowner’s fraternity members are all on level 3 or maybe level 6 adulthood, their responsibilities increase with initiation is tied to the land it includes property taxes, water sewage and trash bills, and insurance premiums! Successfully managing the responsibilities of owning the land and building are a task in and of themselves but also managing those who live in it .. you are a SHero!

2. Tax Breaks!

Who doesn’t want to get Uncle Sam out of their pocket + increase their income tax return next year? When you become a homeowner, you will be eligible to deduct your: closing costs, mortgage interest + property taxes; which could result in an increased tax return. This not only applies to your primary home of residence but also your future vacation home as well.

3. Capital Gains Exclusions

DID SOMEONE say tax break!? Owning a home, as a primary residence for more than 2 years qualifies you for a Capital Gains Exclusion. This means, when you sell your home if profit is less than $250k it is not subject to capital gains taxes. That is a potential of $250,000 of un-taxable income. $250,000 of un-taxable income on a single sale. ON. A. SINGLE. SALE. That’s an incredible tax break! No wonder so many millionaires make their money in the real estate industry!

4. Equity is basically a savings account

Most mortgages are amortized loans. An amortized loan is repaid on a periodic schedule when the payment, which consists of both principal and interest is applied to the loan, the interest for the period is satisfied before the principal is reduced.

Over the life of the loan, as the principal on the loan decreases the amount of equity or ownership in the home increases. Any portion of the mortgage that is not applied to interest is like putting money in a savings account or an equity bank.

I know you “bought” the house at closing, but if you did not buy with cash, you my friend, are not the homeowner, No Distress Lending, your mortgage lender is the actual owner. You are a proud owner of really expensive papers. What really happened at closing is, the Bank bought the house + allowed you to take possession and you agreed to pay the bank back. You won’t be the homeowner until you fully satisfy the mortgage.

5. Cheaper than renting!!

Dollar for Dollar it is not always guaranteed that a mortgage will be cheaper than rent. However, as the amortized loan ages and the principal + interest decrease as a result in timely mortgage payments. The amount of the payment that goes to the principal which goes to equity will be larger than the payment to interest. Therefore, in the long run, buying can be cheaper than renting because you can either be paying off your mortgage and putting that money away or you can pay off your landlords mortgage and send his family on vacation this summer.

So Damsels, are you ready to level up in adulthood join the homeowners’ fraternity? Get some skin in the game and contact a local real estate professional for assistance purchasing your first home!

as always remember,


Follow this link to visit my FAVORITE Realtor in Central Pennsylvania’s site.

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