Reasons to own a home a numerous, including financial benefits as well as security. These are just a few of the many reasons it makes sense to buy a home:
- Building equity: When you rent, that is money spent that you will not see benefits to down the line. When paying down a mortgage, that money spent goes towards building equity in your home.
- Important tax benefits: The Tax Code allows homeowners to deduct interest paid on the mortgage, some costs associated with purchasing a home, and property taxes which add up to a huge financial benefit.
- Appreciation: Real Estate is known for having stable growth in value. Even within the last ten years, which includes hard times within the economy, home values are still up 7% overall (Realtor.org).
- Savings: As a homeowner builds equity in their home, it’s similar to having a built in savings plan. When a homeowner sells their home, they can usually take up to $250,000 ($500,000 for a married couple) without having to owe federal income tax on it.
- Stability: When someone rents, they never really know what their rent payment may increase to year after year. Their rent payment can fluctuate beyond their control. On the flip side, a homeowner’s mortgage payment will stay the same if they have a fixed rate mortgage and may even go down over time if they are able to refinance to a lower rate.
- Ownership: When you own you are free to decorate your home any way you like and to install any upgrades that you choose.