Attaining The American Dream The 5 Financial Reasons To Buy

Dated: 01/24/2017

Views: 77

The American Dream of homeownership is alive and well. The reasons to own differ for each buyer, with many basic similarities.

Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership in his paper - The Dream Lives On: the Future of Homeownership in America.

Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2.) You're paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3.) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially. If you are considering a purchase this year, contact a local professional who can help evaluate your ability to do so.



I have lived in the beautiful state of Colorado for over 16 years. In addition to the Realtor education, which I continue to enhance every chance I get, I earned a Bachelor’s Degree in Communications from the University of Colorado at Denver.

I have nearly 7 years of experience in Real Estate Investing, during which I’ve learned how much I enjoy the industry. This passion for Real Estate, combined with the passion for helping others, made me realize that being a Realtor is my perfect fit!

I am passionate about the needs and goals of my clients and will do absolutely everything in my power to ensure your success. Whether you are buying or selling, I will focus on taking the pressure off of you so you can make clear and concise decisions throughout the process and will bring savvy negotiations and cutting-edge marketing strategies to the table. It is my priority to provide great customer service, consistent communication, strong attention to detail and ensure a positive experience for all parties in a transaction.

If you are looking for great home buying or selling experience, call Olga today at 720-365-4651

Blog author image

Olga Telesin

My name is Olga Telesin and I am a Colorado Realtor helping buyers and sellers around the Denver Metro areas of Colorado, including Denver, Aurora, Parker, Centennial, Highlands Ranch, Castle Rock and....

Want to Advertise on this Site?

Latest Blog Posts

6 Things To Know When You Relocate To Denver

Denver has so much to offer and the world is on to all the greatness Denver provides to families, singles, young, old, internationals, and a variety of industries and demographics.  Here are

Read More

Beautiful Knolls West Townhome

7106 S Knolls WayCentennial, CO 80122Knolls West Townhomes SouthGlennFantastic townhome! Clean and inviting in highly desirable location, popular Knolls West Townhome Community! Walking &

Read More

HUTCHINSON HEIGHTS Open House

Bring your rackets! You must see this large, beautifully maintained home that backs to a park with public tennis courts! Aurora's Hutchinson Heights neighborhood is centrally located,

Read More

What Is APR Or ARMS Quick Explanation

The annual percentage rate (or APR) is the amount of interest on your total loan amount that you'll pay annually (averaged over the full term of the loan). A lower APR could translate to lower

Read More