|
Advantages to Home Ownership
There are many advantages to owning your own home that can range from the purely personal to the very practical.
However for many people the motivation for home ownership is primarily financial. Owning your own home is a first rate investment for a number of reasons.
Scheduled Savings
When you buy a house your monthly mortgage payments serve as a type of scheduled savings plan. Over time you gradually accumulate what lenders call equity which represents the ownership interest in the property that can often borrow or convert into cash by selling the house. Where as renters must continue paying rent to a landlord for as long as they rent without the opportunity to build equity.
Stable Housing Costs
While rent typically increases year after year mortgage payments can remain unchanged throughout the entire repayment period.
Increased Value
Homes typically increase in value over a period of time. This increased value is as good as money in the bank to the homeowner.
Tax Benefits
Homeowners also get significant tax breaks that are not available to renters. Interest paid on a home mortgage is usually deductible. This factor alone can save you a substantial amount each year in federal income taxes.
| 
