PRIDE

Buying your own home typically gives a greater sense of accomplishment than renting does. Being able to own your own home and decorate/furnish it however you prefer can be very liberating. Your home then becomes an extension of who you are, which brings a sense of pride. According to a recent survey, American’s value owning their home just as much as being successful at their job.

STABILITY AND SECURITY

Owning your home not only brings stability and security in the sense that you have an established shelter and community, but it also comes with financial security. When renting a home, the landlord has control over both the amount you spend on rent and the time before your lease expires. As a homeowner, you can secure a predictable mortgage payment for up to 30 years. Your housing budget also goes towards your own benefit, rather than a landlord’s.

FINANCIAL BENEFITS

Although the upfront cost of a down payment and closing can be daunting, the monthly payments are typically less than that of renting. You are also investing in your own asset as opposed to a landlord’s property. The value of your home will appreciate over time and can be one of your greatest investments. For example, a house you originally purchased for $200,000 could eventually be valued at $300,000 depending on the amount of time you plan on living there and market conditions. This could potentially benefit the financial position of your future generations (your kids) as well.  

FREEDOM TO MAKE MODIFICATIONS

When wanting to make changes or renovations to a house you are renting, you not only have to have the landlord’s permission to do so, but all the benefits of it go towards the landlord as well. If you own the house, you have the freedom to do whatever you want to it and you will reap all the benefits.

SECURE RETIREMENT

Owning a house for a long period of time will result in the value increasing, therefore becoming a great investment for retirement. When planning to retire, you can either sell the home and buy a smaller one, or you can rent out the house to others and collect a steady stream of income. Either way, you are profiting off of the value of your home and can use that extra money for travel or recreational activities.

TAX BENEFITS

Many expenses of owning a home, such as property taxes and accounting costs, are tax-deductible. A few other tax benefits of homeownership are:

• Mortgage Interest Deduction
• Property Taxes
• Home Office Deduction
• Capital Gains Exclusion

To learn more about the specific benefits you can receive, talk to your CPA or tax advisor.