Why It Pays To Own a Home and When To Buy One

By Jacqueline Smith

Jacqueline Smith is dedicated to serving the vibrant Vancouver/Portland real estate market. Since stepping into the industry in 2014, I hit the ground running selling 52 homes in my first year and now have my hand in selling over 1700 properties.

One of the most popular questions I get as a real estate agent in Southwest Washington is, “Is now a good time to buy?” My answer is always the same, no matter what the market looks like: the best time to buy is when you are ready.

Real estate has always been one of the most powerful ways to build wealth and financial stability. If you plan to own property over the long term and can afford the house and the mortgage payments, it’s one of the smartest investments you can make. Let me share the three biggest financial benefits of homeownership.

1. Appreciation. Real estate has appreciated at an average rate of about 4% per year over 30 years. While the market goes up and down, real estate values almost always rise over time. This means your home’s value is increasing every year. If you hold onto your home and treat it as a long-term investment, you will come out ahead.

2. Principal payment reduction. This is where owning a home starts to pay off compared to renting. When you rent, 100% of your monthly payment goes to your landlord’s mortgage or bank account. But when you own a home, a portion of your mortgage payment goes toward reducing the principal balance of your loan. In a way, it’s like a forced savings account. Every time you make a mortgage payment, you’re building equity in your home.

3. Tax benefits. The government offers some nice incentives for homeowners. For example, you can often write off the interest you pay on your mortgage as a tax deduction. Depending on your situation, this could translate into significant savings. When you add all of these benefits, it’s very powerful to see on paper.

If you’re wondering how this plays out in real life, download our PLACE Mortgage Calculator App. It’s available in both the Apple App Store and Google Play Store. With this calculator, you can plug in numbers like appreciation rates, mortgage payments, and more to see how much you could benefit financially. You can use this to calculate mortgage payments for properties you’re looking at online.

If you factor in all three benefits, appreciation, principal reduction, and tax savings, you could see gains of anywhere from $20,000 to $40,000 or more over the years. Even if the market takes a dip occasionally, you’re still building equity through principal reduction and enjoying those tax perks.

Real estate is a long-term game. If you buy a home with the intention of staying put for a while, you’re setting yourself up for financial success. Sure, markets fluctuate, but history shows that real estate always trends upward. And let’s not forget the bigger picture: the average net worth of a homeowner is substantially higher than that of a renter.

If you have more questions about whether now is the right time to buy, simply contact me at (360) 560-1156 or jacqueline@evergreenrealestatepartners.com. I’m happy to consult with you over the phone, on Zoom, or in our office in Southwest Washington in Vancouver.