Advantages of Owning a Home

There are many advantages to owning your own home. Here are just a few specific reasons:

A Home is generally a sound investment: When you carefully choose a home you can afford, the potential payoff is great. Each month when you pay your mortgage, you’re building equity in a place of your own. Your equity is the current market value of your home minus the debts or mortgages against the property. The longer you stay in your home, the more equity you will have. And, unlike most things you buy, a home usually increases in value as time passes, building more equity.

But remember: there is no guarantee that your home’s value will appreciate.

Home ownership offers great tax advantages: The mortgage interest and real estate taxes are tax deductible. That allows you to subtract part of your housing-related expenses from your income, which could reduce your taxable income significantly.

Equity: Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

A first home often leads to a better second home:  As you build up equity in your current home, it is usually easier to afford another, more expensive home in the future.

Savings: Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

Predictability: Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will likely increase.

You are better able to plan your housing costs: Rent increases are unpredictable, usually beyond your control, and renting provides no future benefits.

Freedom: The home is yours. You can decorate and improve your home any way you want according to your needs and desires and choose the types of upgrades and new amenities that appeal to your lifestyle.

Stability: Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity. 

You gain satisfaction and security of ownership: Owning a home may give you a new sense of pride in your surroundings and encourage you and your family to plant deeper roots in your community.