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Home for the Holidays: Five Reasons Your Home Remains a Good Investment

SPRINGFIELD, Ill. — As families and friends gather for the holidays at homes across Illinois, it’s a good time to reflect not only the meaning of “home” but also on the value of homeownership for families and communities. The Illinois Association of REALTORS® offers five reminders why homeownership continues to be a sound long-term investment: building long-term wealth, stable monthly payments, tax benefits, freedom to adapt and live in a home that reflects your lifestyle and finally, making an investment in your future and your community.

“Studies show that homeownership has a significant positive impact on net worth and is a primary means of financial advancement for many people,” said Sheryl Grider Whitehurst, president of the Springfield-based Illinois Association of REALTORS® and development and operations coordinator for Peoria-based Traders Realty. “Homeownership also boosts civic participation, health and overall quality of life. People who own their homes vote more, volunteer more and contribute more to their neighborhoods. Homeowners don’t move as often as renters, providing added stability to communities.”

According to a recent survey by the National Association of REALTORS®, nearly eight out of 10 Americans still believe that buying a house makes good financial sense. The Illinois Association of REALTORS® points to five reasons why owning a home remains a solid investment:

1. Long-term Wealth: Owning a home is one of the best ways to build long-term wealth. Historically, a homeowner’s net worth has ranged from 31 to 46 times that of a renter, according to data from the Federal Reserve Survey of Consumer Finances. Despite the economic downturn, homeownership today still represents a family’s primary means of financial advancement. Appreciation over time outpaces inflation, so a home provides protection against inflation and is a form of forced savings as a part of your payment each month goes toward equity.

2. Stable Monthly Payments: Most homeowners enjoy stable housing costs—a fixed-rate mortgage payment might not change for 15 to 30 years while rent typically increases three percent each year. Locking in today’s low interest rates has the potential to save homeowners thousands of dollars a year. And homes are as affordable as they have been in decades.

3. Tax Benefits: Homeowners can typically deduct mortgage interest and property taxes on their federal income tax return, leading to significant tax savings.

4. Freedom: Owning a home comes with the freedom to do what you want to the property. Homeowners are free to renovate, redecorate and modify their homes as they wish. If you want to paint the walls or make a simple landscaping change, there isn’t a landlord to stop you.

5. Investment in Your Future: While financial considerations are certainly important, a lot of today’s buyers are motivated by things beyond just dollars and cents. For many, homeownership is a lifestyle choice—a place to raise a family, build memories and be part of a larger community.

To learn more about the benefits of buying a home, financing programs available, visit the consumer site www.YourIllinoisHome.com.

The Illinois Association of REALTORS® is a voluntary trade association whose 46,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.

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