Homeownership is one of the most important aspects of having your place to call home. With the right set of skills, having a house and property can be a great investment that will only increase value over time. But if you’re not sure what to believe when it comes to homeownership, here are some myths you need to stop believing.
Myth 1: You Need a Huge Downpayment to Buy a Home
One of the biggest myths about homeownership is that you need a lot of money saved up to buy a home. In reality, many lenders offer mortgages with downpayments as low as 3-5%. So if you’re looking to buy a home shortly, start saving now, and you’ll be ready when the time comes.
Myth 2: You’re Better Off Renting Than Owning
Believe it or not, there are a lot of benefits to owning your own home. For one, you can deduct your mortgage interest from your taxes each year, which can save you a lot of money in the long run. And unlike renting, you’re building equity in your home each month, which will come in handy if you ever decide to sell.
Myth 3: You Can’t Afford to Own a Home
One of the main reasons people choose to rent instead of own is because they think they can’t afford to buy a home. But the truth is, there are a lot of programs available that can help you afford a home, like a downpayment assistance or low-interest mortgages. So don’t let the fear of money stop you from owning your place.
Myth 4: Homeownership Is a Risky Investment
While it’s true that homeownership does come with some risks, it’s also important to remember that over the long run, homes tend to increase in value. And unlike other investments like stocks or mutual funds, you can use your home as collateral if you ever need to borrow money.
Myth 5: You Can’t Sell a Home If You’re In Debt
One of the biggest reasons people are afraid to buy a home is because they think they’ll get stuck with it if they ever need to sell. But the truth is, most lenders will let you sell your home even if you’re still in debt. So don’t be afraid to take the plunge into homeownership – just make sure you do your research beforehand.
Myth 6: You’re Locked In to Your Mortgage for the Length of the Loan
This is another common myth about homeownership, but it’s actually not true. Most mortgages have a clause that allows you to pay off the loan early without any penalties. So if you ever find yourself in a position where you can afford to pay off your mortgage sooner than expected, you can do so without any problems.
Myth 7: Homeownership Is a Waste of Money
This is definitely the most false myth about homeownership. In fact, homeownership can actually be a great way to save money over time. Not only do you get to deduct your mortgage interest from your taxes, but you’re also building equity in your home each month. And unlike renting, you’re not throwing your money away each month – you’re investing in your future.
Myth 8: You Can’t Get a Mortgage If You’re Self-Employed
This is another myth that’s been busted in recent years. In fact, there are a lot of lenders out there who offer mortgages to self-employed borrowers. So if you’re looking to buy a home and you’re self-employed, don’t let this myth stop you from applying.
Myth 9: You Have to Move Every 5-7 Years to Avoid Paying Capital Gains Taxes
While it’s true that you have to pay capital gains taxes on your home if you sell it, this doesn’t mean you have to move every 5-7 years. In fact, there are a lot of ways to avoid paying these taxes, like living in your home for 2 out of the last five years or using a 1031 exchange. So don’t let this myth stop you from buying a home – there are plenty of ways to avoid paying taxes.
Myth 10: Homeownership Is Out of Reach for Young People
One of the biggest myths about homeownership is that it’s only for older, more established couples. But the truth is, young people can also benefit from homeownership. In fact, buying a home is a great way to start saving for your future and build equity in something you own.
These are just a few of the myths people often believe about homeownership. If you’re still not sure what to believe, be sure to consult with a qualified real estate agent or lender. They’ll be able to help you understand all the benefits and risks of owning your own home. And who knows – you might just decide that homeownership is the right choice for you.