Latest / The Octavian Realty Group Podcast / Own It: How Homeownership Builds Wealth, Stability & Freedom

Transcript

Own It: How Homeownership Builds Wealth, Stability & Freedom · The Octavian Realty Group Podcast

• 0:00
  Hi friends, welcome back to the Octavian Group podcast. I'm Rachel Scheller, your host
• 0:05
  with the Octavian Realty Group. I'm also affiliated with Oregon First and Washington First
• 0:10
  Properties. Today we're diving into one of my favorite topics and that's the benefit of home
• 0:16
  ownership. I'm such an advocate for this because I believe anybody can do this. If you're paying
• 0:22
  rent, you're really buying a house already. It's just for someone else. So we're going to go over
• 0:29
  this today. So whether you're a first-time home buyer thinking of moving up or just curious about
• 0:34
  what owning a home truly offers, this episode is for you guys. So let's face it you guys,
• 0:39
  renting has its conveniences but home ownership brings long-term rewards that renting just
• 0:45
  just can't match. So let's break down some of the key benefits. Pride of ownership, number one.
• 0:52
  Home ownership has always been part really of the American dream. So when you own your home,
• 0:57
  you're not just paying rent, you're building equity, creating security, and taking pride in
• 1:03
  something that's really yours. So that's security, wealth, and well-being really. This is what real
• 1:09
  estate is proven to do. You can paint the wall, if it's pride of ownership, you can paint the
• 1:16
  walls any color you want. Bring home a pet, plant a garden. It's freedom that renting just doesn't
• 1:22
  provide and beyond that it's something you can pass on to your family someday if you want to.
• 1:28
  So number two, real estate is a hedge against inflation. So if you've noticed that your rent's
• 1:34
  going up every year, you're not alone. In Portland Metro, the landlords could only increase it so
• 1:41
  much and if they don't they can't go back and increase it even more. So most landlords are
• 1:46
  doing it every month, every year. So rent increases of four to six percent annually are common. In
• 1:53
  Oregon here, we can do up to nine or ten percent. Some landlords are even pushing for double digit
• 1:57
  hikes, which is true. I don't. I try not to do that. But with a fixed rate mortgage though,
• 2:04
  if you buy a house, your principal and interest stay the same for the entire life of the loan.
• 2:09
  That means while prices rise around you, your housing prices and your housing payment remain
• 2:15
  steady. And that's a huge financial advantage, you guys, because you can plan for that. You're
• 2:21
  not going to have to have your payment go up every year unless your taxes go up a little bit.
• 2:28
  And those are also slated only a certain amount. So leverage. This is a big one and really often
• 2:34
  overlooked and this is how we were able to parlay one into two into three into four into five into
• 2:40
  six into seven is leverage. Real estate allows you to leverage your money and your credit.
• 2:49
  For example, if you put $20,000 down on a $200,000 home, it's hard to find $200,000 home,
• 2:56
  but we're doing this for simple math, and that home's value increases by just two percent,
• 3:02
  you've gained $4,000 in equity. So compare that to leaving that $20,000 in a savings
• 3:08
  that earns two percent. If you're lucky, that's only $400. So it's one of the few investments
• 3:14
  where you can control and benefit from appreciation on the entire asset, even though
• 3:19
  you only paid a portion up front. And if that was confusing, call me, we'll go over that again. But
• 3:25
  leverage is super important and helps you really build fast. Tax advantage. Even though mortgage
• 3:31
  interest deduction has changed in recent years, you guys, there are still plenty of benefits.
• 3:36
  You may be able to deduct your property taxes and when you sell your primary residence,
• 3:41
  you could exclude up to $250,000 in capital gains if you're single, or up to $500,000 if
• 3:46
  you're married, provided you've lived there at least two out of the past five years.
• 3:51
  So think about that. You buy your house for $200,000 and you live there for three years,
• 3:58
  and then you sell it for $400,000. That $150,000 gain, or whatever it just said,
• 4:07
  um, pardon me. But that gain, the gain you got, the money you made, is yours tax-free. Assuming
• 4:16
  it's not more than $250,000 for a single person or $500,000 for married. You guys, that's huge.
• 4:21
  That's huge. So next benefit is stability and community. Owning a home also brings stability.
• 4:28
  So no sudden notices from landlords, no forced moves, no unexpected rate hikes. Plus when you
• 4:35
  stay in one place longer, you get to know your neighbors, support local businesses, and become
• 4:39
  part of the community, which truly is valuable. It's a value that really can't be measured in
• 4:46
  dollars. It's kind of a belonging in your community. Next thing is access to equity.
• 4:54
  Equity gives you flexibility. So a home equity loan can be a smart way to fund renovations,
• 5:01
  consolidate debt, or even pay for education, or buy another property. Often with lower interest
• 5:08
  rates than credit cards or personal loans. So access to equity is is huge. So things you should
• 5:16
  know is not every expense is deductible or advantageous. So things like homeowner's
• 5:22
  insurance, utilities, and general maintenance don't provide tax breaks. They're just part of
• 5:27
  protecting and maintaining your investment. One thing you might think about doing is putting a
• 5:31
  home warranty on your house when you buy it. So bottom line, you guys, homeownership remains one
• 5:36
  of the most powerful tools for building wealth, stability, and pride. It's not just a roof over
• 5:42
  your head. It's your foundation for financial growth and personal freedom. It really, really is.
• 5:47
  If you're thinking about taking a step towards homeownership or if you want to understand your
• 5:51
  options better, visit me at OctavianRealtyGroup.com where you'll find resources, market updates, and
• 5:58
  ways to connect with me and the team. So we'd love to help you build security, wealth, and well-being
• 6:04
  through real estate, you guys. You won't regret it. So thanks for joining me today, you guys.
• 6:10
  Rachel Scheller with the Octavian Group podcast. Remember, whether you're buying your first home
• 6:15
  or your forever home, we're here to help you make confident, informed decisions. And until next time,
• 6:21
  click the subscribe button so you don't miss an episode from us. And stay inspired,
• 6:28
  focused, and keep building your dream. Remember, it's a good life.