There are times when a person should rent, but most often home ownership has many more benefits and advantages. Many studies are showing that there are benefits for both the owners and the community for owning your own home.
Why Buy A Home
1) More Stable Housing Costs
Rent payments can be unpredictable and typically rise each year, but most mortgage payments remain unchanged for the entire loan period. If the taxes go up, the increase is usually gradual. This stable housing cost especially important in times of inflation when renters lose money and owners make money.
2) Tax Savings
Homeowners can be eligible for significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax, as well as many states’ income taxes. This can be a considerable amount of money at first because the first few years of mortgage payments are made up mostly of interest and taxes.
3) Debt Consolidation
If you need to, you can refinance a mortgage loan to consolidate other debts (an opportunity you don’t have if you are renting.) And the interest in this is also tax-deductible.
Instead of payments disappearing into someone else’s pocket, homeowners are building equity in their own home. This is often one of a person’s biggest investment assets. Each year that you own the home you pay more toward the principal, which is money you will get back when the home sells.
5) It is Yours!
When you own a home you are in control. You the freedom to decorate it and landscape it any way you wish. You can have a pet or two. No one can pop in and inspect your home and threaten to evict you.
When considering whether or not to buy a home, it’s important to think about your financial situation and the personal pros and cons for your lifestyle. It would be a mistake to buy a home if you want to constantly move, or would prefer to have the amenities that an apartment complex can offer. Regardless, there should be careful consideration before making your next big move.