In 1776, it was a brave act to publish a declaration of independence from Great Britain. After all, the English dominated the world at the time and such a declaration could only be viewed as an act of treason punishable by death. But they did it and they fought and died making their declaration a reality.
Like the benefits a country can experience with self-government, individuals who are independent, not dependent on another’s control, authority, or resources can greatly reduce their stress and improve their sense of wellbeing. Certainly, not being dependent on others except by choice, not necessity, is good.
Your path to independence
One of the most important paths in the quest for independence is one which leads to owning one’s own home. There’s a certain freedom and feeling of stability homeownership offers. Not being concerned or subject to the whims of a demanding landlord or the ever present threat of housing costs increases is a recipe for a good night’s sleep. There are impressive financial benefits as well.
Think about this. If you rent a home for $1,500 a month which is on the low side in Seattle, your annual cost for rent is $18,000. If you buy a home for $500,000 and put $100,000 down, the annual interest you pay on the remaining balance will be $14,000 and the taxes will be about $4,000. So the amount you are paying is virtually the same. The difference is, not only can you get a tax break for your interest and tax payments, the value of your house is going up every year. Over the past year in Seattle, median prices went up 7.3%. That increase is calculated on the whole value of your home, not just the mortgage balance. That means your $500,000 property would have gone up $36,500 – twice what your paying.
About 65% of US Citizens own their own homes. In 1950 that number was only 55%. For Black Americans, the percentage is about 44%, up from 34% in 1950. Owning your own home is one of the cornerstones of building wealth and here at Providencia, we would love to help you cross that threshold.
Just contact us and we’ll figure out how to make it happen. That’s what we do.
Here’s to your Independence.