Buying - Advantages of Home Ownership
For most people home ownership is a dream come true. Owning a home allows us to put down roots and have a living space that is truly our own while building your future.
Following are just a few of the many benefits of owning your own home:
Advantages of Homeownership
Homeownership is an
investment
Unlike other purchases such as automobiles and expensive toys, a home generally appreciates over time. How much appreciation depends on the local area market and often the median home prices will increase even during recession periods.
Equity
When you own a home – you’re building equity. Each month that you pay your mortgage payment, your principal loan balance decreases and your equity increases.
This is like making deposits into your bank account because that money could be available to you in the future to invest towards home improvements; pay off other debts or to invest in additional properties.
Tax Benefits
One of the other benefits of owning a home is the ability to deduct mortgage interest on your tax return. This is especially beneficial in the first few years of obtaining your mortgage because this is the period when you pay the most interest.
Control housing costs
A fixed rate mortgage means that your payment will remain the same for the life of the loan (usually 30 years), unlike rent payments where they usually go up yearly and all you’re doing is building your landlord’s equity.
Self-Sustainability
Home-ownership can help you become self-sufficient in many ways. Long-term renters lack sustainability because often their housing expenses are increasing (usually yearly). Having a fixed mortgage payment will help level out your living expenses, so as your income increases, it can be budgeted elsewhere.
No More Moving
Or less moving – Unless you need to up-size or down-size your current home. As a homeowner, you will have more stability. Moving from rental to rental is a financial and emotional burden – not to mention the inconvenience. As a tenant you may not know what your future rental costs will be.
Social Advantages
When you purchase your home and you live there long-term, it provides social benefits such as friendships with neighbors, community involvement, and school consistency for children.
Investment Opportunities
Equity is what allows many homeowners to make future investments, either in the same home (home improvements); buy a higher-priced home; a second home, or a vacation home.
