4 Ways Homeownership Can Set Your Children Up To Succeed
Homeownership isn't just an important investment in your own financial security but your children’s as well. Here are some key benefits to consider about homeownership whether you are buying your own home or in a position to help your children buy their first home.
Help your child lay down roots as a homeowner.
Homeowners are more likely to stay in a home longer because they do not have to deal with renewing a lease or the property being sold out from under them. Foreclosure is not nearly as common as eviction. It is not just that homeowners are less likely to move, but that they are less likely to be forced to. When they do they often have a sort of cushion from the sale of their former home to aid the transition. In short, homeownership provides children with a more stable and predictable living situation. All of that really enables children to comfortably establish roots in their community with less concern about being uprooted and forced to leave a place they love.
Homeownership can allow you to fund your child’s dream.
When you own your home, it is not just a place you live but an asset that you can borrow against. While it has some financial risks, you can essentially cash out and liquidate some of your home value by taking out a second mortgage. You can then use this cash to send your kid to school or help fund their start up. Bill Gates, Jeff Bezos, and many others all received financial support from their parents that enabled them to start their companies and become the business leaders they are today.
Homeownership helps you support yourself through your retirement.
Owning your own home can help you remain financially independent. Given how most mortgages have a 30 year fixed rate term, many homeowners will have completely paid off their mortgages by the time they retire. While there will still be expenses related to repairs and property taxes (although some states have property tax relief for the elderly), not having to pay for a mortgage or rent can make it a lot easier to live within your savings after you retire.
Homeownership provides the basis for inheritance .
Not only can owning your home help you remain financially independent after you retire it can also help you leave something to your kids. Homes are very hard to completely liquidate while still residing in them so many homeowners are able to transfer quite a bit of home equity if not outright ownership of the home to their descendants.
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