Why Homeownership Is the Best Investment You Can Make in 2024

As we look ahead to the New Year, many people have their financial picture on their minds, intending to make 2024 the year they grow their wealth.

Stability and Security

Home ownership is an exceptional investment due to the stability and security it offers.

Mangrum said, “It not only provides a sense of permanence but also ensures a solid foundation for financial growth and peace of mind. When you own a home, you have a sense of control over your living situation and can make changes to your property without the fear of being asked to leave by a landlord.”

For many people, this stability allows for long-term planning and gives you peace of mind knowing that you have a permanent place to call home.

Building Equity

Another advantage of home ownership is the potential to build equity over time.

“Equity is the difference between your home’s market value and the amount you still owe on your mortgage,” Mangrum explained. “As you make monthly mortgage payments, you are essentially paying off a portion of your loan and increasing your equity in the property. This can serve as a valuable source of savings for future investments or retirement.”

Equity, over time, can turn into actual cash you can take out of your home for other things such as home renovations or other purchases.

Tax Benefits

As we approach the end of 2023, taxes are going to be on a lot of people’s minds. A home brings potential tax benefits, too.

According to Mangrum, “Depending on your individual situation and the country you reside in, you may be able to deduct mortgage interest and property taxes from your income taxes. These deductions can result in significant savings over time.”

Appreciation in Value

While real estate markets can be unpredictable, historically, home values tend to increase over time. Mangrum explained, “This means that as a homeowner, you have the potential to see a return on your investment in the form of increased property value. In 2024, with a growing global population and continued demand for housing, it is likely that home values will continue to appreciate.”

Personalization and Pride

Finally, home ownership allows for “personalization and a sense of pride in your living space,” Mangrum said. “Unlike renting, where you are limited in making changes to the property, owning a home gives you the freedom to customize and make improvements as you see fit.”

She said this not only adds value to your property but can generate satisfaction in customizing a space that reflects you and your family.

There’s No Time Like Now

According to Sharif, the key to real estate investment is understanding that “time in the market is more valuable than timing the market.”

What he means is that while it’s tempting to wait for the perfect conditions, such as lower interest rates, the real value lies in the long-term appreciation of property.

“For instance, properties bought over two decades ago at what seemed like high prices have now appreciated significantly, offering a substantial return on investment. This appreciation not only counteracts the initial costs but also provides a substantial asset value increase.”

A Hedge Against Inflation

Another important aspect of homeownership that Sharif pointed out is that it acts as an effective hedge against the rising cost of living.

“Owning a property means that a significant portion of your expenses (i.e., monthly mortgage payments) goes towards building equity rather than disappearing into a landlord’s pocket,” he continued. “This equity is not just a number on paper; it’s a real financial asset that can be leveraged for further investments, business ventures or even a comfortable retirement.”

There Are Many Opportunities

Perhaps the best reason to invest in a house in 2024 is that the current market climate, despite its challenges, offers unique opportunities, Sharif said.

“The properties that seemed overpriced years ago are now valued assets. This scenario underscores the importance of viewing real estate as a long-term investment rather than a quick profit scheme.”

In conclusion, Sharif said, “Homeownership in 2024 is not just about acquiring a living space; it’s an investment in your future financial stability and growth.