New Ways Homeownership Builds Wealth

1011. While becoming a homeowner seems to get more difficult as home prices, mortgage interest rates, and home insurance premiums continue to rise, it’s essential to know how owning real estate can help you build wealth. Laura covers seven ways buying a home improves your finances. Whether you’re considering becoming a first-time homebuyer or ditching your home to be a renter, understanding some old and new ways that homeownership helps build wealth is essential.

Key Takeaways:

• How much richer homeowners are compared to renters.
• The two ways homeownership helps you build equity: price appreciation and paying off an amortizing mortgage.
• Whether homeownership costs more or less than renting largely depends on your location.
• Some costs of homeownership can increase, but buying a home largely protects you from inflation.
• Various home-related tax deductions, including a new one, make homeownership more affordable if you itemize on your tax return.
• The capital gains tax exclusion is one of the largest tax breaks that qualifying homeowners enjoy when they sell their home.

Upcoming Wedding Series This May: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: [email protected] or leave a voicemail: (302) 364-0308.

Money Girl is a Quick and Dirty Tips Podcast hosted by Laura Adams.

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