Whether you are looking for more space to raise a family or just a place to call your own, there are many advantages to owning a home. 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, over time the value of the property gradually increases. The equity you build is like making regular deposits into a savings account. In contrast, renters must continue to pay rent to a landlord for as long as they rent, without the opportunity to build equity.
Stable Housing Costs
Another advantage to home ownership is that while rent payments typically increase year after year, mortgage payments can remain unchanged for the term of the loan. Eventually you can pay off the mortgage as opposed to paying increasing rent with no end in sight.
Increased Value
Houses typically increase in value, or “appreciate,” over time. It’s not unusual to find a house that sold for $150,000 fifteen years ago to be valued at much more than that amount today. This increased value is a great "nest egg" for the homeowner.
Tax Benefits
Homeowners also get large tax breaks that are not available to renters. Most importantly, interest paid on a home mortgage is usually deductible. This factor alone can save you a substantial amount of money each year in federal income taxes.
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