Benefits of Owning a Home

Last week in response to my newsletter on interest rates, an old work colleague and proud long-time renter reached out to me to share his epiphany. He said, “I just realized that even though I rent, I am paying a mortgage. It’s just not mine.” 

No matter how you slice it you are paying a mortgage, either your landlord’s or your own. You can either contribute to someone else’s net worth or to yours.

The benefits of homeownership are many and while the current geo-political and economic forecast feel grim, it's important to realize that the real estate market goes through cycles but over the long term remains a very sound investment. Over beers at a local brewery we talked about the many advantages of homeownership.

Whether you are a first time buyer, a move up or downsizing buyer, or even if you want to invest and become a landlord yourself, read on to learn the 4 benefits of owning a home:

1. Appreciation – If you bought during the bidding war frenzy you may now feel like you overpaid; still, if your goal now is as it was then, is to remain in your home for 5 or more years, you are more than likely to realize a gain. Real estate is not day trading. For those on the fence about purchasing a home or worried about a potential recession, keep in mind the factors contributing to the housing bubble are not in play now. If you are optimistic about your long-term employment and residing here, you have a fabulous opportunity with historically low interest rates and more inventory. 

2. Building Equity/Net worth – Sure, you’ll have a mortgage to pay but that payment is applied toward reducing the principal balance on your investment vs. the money that you’ll never see again once your landlord cashes your rent check. People who want to own a home, especially in pricier areas such is our region, find it difficult to save for a down payment while also paying rent. With the shift in the market more buyers are able to avoid bidding wars, negotiate on price, or put less than 20% down. Consider acting now while rates are low and the market leans more towards favoring buyers.

3. Tax Advantages – Though every situation is unique, and you should consult your tax advisor, according to the Tax Policy Center homeowners may deduct mortgage interest and property tax payments, as well as certain other expenses from their federal taxable income. When you rent, you cannot take these deductions – but your landlord can! Additionally, homeowners may exclude, up to a limit, the capital gain they realize from the eventual sale of their home.

4. Stability – So far as you purchase within your means and are confident about your long-term employability, you won’t have to move unless and until you want to. This is in contrast to a rental where you may choose - or sometimes be forced - to find a new place at the end of the lease term. Worse, when rents increase you might not be able to afford it. Homeownership provides a level of stability no rental can.

If you’re on the fence and want to talk further about what makes sense for you, don’t hesitate to reach out - I’m here to help you make an informed decision with clarity and confidence. Call/text me anytime 425-495-0926.

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ABOUT THE AUTHOR:

Gina Madeya: 3rd Generation Realtor, Athlete, World Traveler, Wine and Dog Lover

Welcome and thank you for considering me to serve you and your real estate needs. Whether you're thinking of buying or selling your home, being successful in this market takes an experienced, trusted advisor with proven results. I’m grateful for the opportunity to earn your business. 

My passion for real estate began as a child watching my mother help buyers and sellers and often assisting her with creating marketing flyers and other small tasks. My grandparents were very active in the purchase and sale of properties that now make up much of modern-day Atlantic City. I learned early on that every buyer and seller is different, both in personality and goals, and that a one-size fits all approach does not work. As an adult, my interest in real estate evolved to the investment side and I’ve had the privilege of buying and selling several homes and condominiums. While the outcome was always rewarding, I was never satisfied with how I felt as a consumer in the process. So, after 20+ years in corporate life (including JPMorgan Chase and Microsoft) I decided to leave that behind to pursue the family tradition as a real estate professional with a focus on client education and advocacy. 

While real estate transactions can be challenging, stressful and complicated, my approach to real estate is simple: I help you make informed decisions with clarity and confidence. I take a hands-on approach to orient you to the market, educate you about the process, help you find the right home, and when you’re ready, craft and present a compelling offer that honors both your financial capability and individual risk tolerance. You can count on me to guide you through every step of this complex and very active market with hands on support to deliver an experience and results you deserve.

In the business of helping you buy or sell a home my experience, work ethic, business acumen and professional poise sets me apart. At both JPMorgan Chase and Microsoft, I was consistently in the top 10% of performers and a participant in Microsoft’s exclusive High Potential program. My finely-honed skills in people and program management positions enable me to nimbly balance both the human and process side of real estate transactions to ensure your success in either buying or selling a home. In my 2nd year as a real estate agent, I achieved nearly $50 million in sales, making me the top producer at my brokerage locally and number 4 in the nation. Most recently, I received Seattle Magazine’s 2018 Rising Star Realtor award based on my superior customer service and potential to excel.  

As a former competitive athlete (gymnastics and body-building), I enjoy the competitive nature of this industry but place a high value on nurturing productive relationships with other brokers, always focusing on the win-win. As a world traveler and having worked in companies with a global presence, I consider it a great fortune to have been exposed to a variety of backgrounds and cultures and enjoy learning more about what makes us unique as well as what binds us together in our shared humanity. When not focused on the details of a real estate transaction, I find creative escape in photography, relaxation in a bottle of wine, and peace in walking my dogs in this beautiful corner of the world we get to call home.  

Again, thank you for visiting today and for the opportunity to earn your business. Backed by the most trusted brokerage in the Pacific Northwest, I consider it a privilege to serve you and pledge my focus, responsiveness, honesty, patience, and never-ending support and gauge my success on your satisfaction!