If you don’t already own a home, there are so many reasons to from a financial perspective: build equity, save money on taxes and use your equity as back-up security. However, as a woman there is an even important reason, it is a tremendous source of security for your future. Many women that own real estate have seen success in other parts of their financial lives as well! If you already own a home, you should think about paying down your mortgage a bit more each month or year.
If you are married, this will only increase the value of your assets towards your retirement. In fact, it is an opportunity to become more active within the financial realm of your life. By becoming interested in the home finance details (i.e. through paying off your mortgage earlier, refinancing when rates lower or appraising the home when values rise), it can lead to taking more of an interest in other areas of your family’s personal finance.
For women that end up alone, either through divorce or widowed, owning a home can provide tremendous financial security. It provides options that provide security later on in life such as: tapping into their home owner’s equity, getting extra income or taking advantage of the increased value or reverse mortgages.
Since real estate prices have gone up so much these last few years, partially due to low interest rates, you might be thinking that you can’t afford to get into the real estate market where you live. Well, stop making excuses! You can look in other areas. For example, New York City has become prohibitively expensive. Therefore, many people are buying homes in the Catskills or outside New York’s 5 boroughs and have already seen property values rise. Or you might be thinking that you don’t have enough saved for a down payment. If you don’t do anything about it, you still won’t have enough saved for a down payment next year. Just get started!
(Copyright Down-to-Earth Finance LLC 2006)