If you are considering whether you should purchase a home or if you should still continue to rent, there are many factors that go into your decision. You are weighing the cost of a monthly mortgage payment vs the cost of rent. You have to consider how much money you would need to come up with for a down payment or what kind of space would make the most amount of sense for you and your family. To help you with your decision, here are five of the best things about homeownership.
1. Building wealth:
When you own a home, you have an asset that will likely increase in value over time. It provides great security, and the opportunity to essentially live “rent-free” in your retirement years when the home is paid off.
2. Freedom to make it your own:
Landlords can be strict about customizing rental properties. Most don’t even allow their tenants to paint. But when you own a home, the possibilities are endless. Get rid of a wall, or paint it any color you like. It’s your property.
3. Building equity:
Every mortgage payment you make, and every improvement you make on the home, is putting money back into your pocket. Unlike with renting, owning a home gives you more than just a place to live. You can use your home equity to get loans and even cash for emergencies.
4. More security and stability:
Studies show that homeowners have a better sense of pride and security than renters. When you rent, you do not know when your landlord might spike the rent on you or if they will ask you to leave so that they can sell the property. When you are a homeowner you are secure in the fact that this is where you are going to live for the foreseeable future.
5. Tax advantages:
Owning a home comes with some pretty great tax advantages. Homeowners can deduct the interest paid on home loans, property taxes, and mortgage insurance—that’s a big break when you go to file your taxes next year.