The rate of homeownership for millennials dipped to a low of 36.2 percent in 2014, according to U.S. Census data, although it's also worth noting that the millennial generation represents the largest percentage of first-time homebuyers. Here's 5 reasons why millennials should be investing in real estate:
1. It's a Good Investment. Rent payments land in the pockets of the landlord each month with the tenant having nothing to show for it at the beginning of each month. However, making a monthly mortgage payment each month on property you own, builds equity in your real estate, not that of the landlord. As the equity grows month over month, your are increasing your net worth with this real estate. Additionally, investing in real estate is not as volatile as investing in the stock market.
2. Value Appreciation. Depending on what area your purchase your real estate, values have been and are likely to appreciate. Not only does this increase the equity you have in your real estate, but it may lead to profits if and when you sell your real estate.
3. Tax Benefits. Owning real estate has it tax benefits, especially if the real estate has a mortgage. You are able to deduct all the interest you pay on your mortgage on your individual income tax return. That may in turn mean that you pay less in income tax.
4. Low Interest Rates. Mortgage interest rates are still at historical lows. Banks view mortgages as a better investment than credit cards, which is why there's such a disparity in the rates. With interest rates so low, the cost of purchasing real estate is less for you, than when interest rates are high. Check out our calculators.
5. Real Estate as a Retirement Vehicle. By the time you retire, your home will typically paid off and you'll be able to tap into your equity, or rent the real estate for an additional stream of income.
If you are looking to purchase your first home, sell your existing home or looking for your dream home, look no further. The Realtors at Dream Homes PA, are all about your dreams and making them come true. We want to know what you want, so that we can help you get there.