There are times when it is better for a
person to rent, but often home ownership has
many more benefits and advantages. When considering home ownership, you need to
weigh the advantages and disadvantages for yourself. If you are like most
people, you will find that homeownership is worth the risks and disadvantages. Listed below are the five major reasons you should own your
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 is 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 they can deduct mortgage interest and property taxes from their 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 is
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 on 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.
Each year that you own the home you pay more toward the principal, which is
money you will get back when the home sells. It is like having a scheduled savings account that grows faster the longer you have it. If
the property appreciates, and generally it does, it is additional money in your
pocket. And you are the one who gets to take advantage of that, not the landlord. You can then use this equity to
plan for future goals like your child’s education or your retirement.
5) It is Yours!
When you own a home you are in control. You have 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.
Even young people, like college students
out on their own, can often benefit from home ownership. It puts them ahead of
other young people their age financially by helping with their credit and
giving them what is often an excellent investment. Often a college student
buying a home will rent the rooms out, and his or her roommates end up making
the payments for the house. When the student is ready to move on, he or she can
sell the home (hopefully making a profit) or keep it as an investment and
continue to rent it out to others.
Buying a home is an important decision. It is
often the largest purchase a person makes in his or her lifetime. Contact
the real estate professionals at Crown Realty Experts to assist you with navigating
this process. We have helped a few thousand people purchase their first, dream,
and forever homes with the empathy, experience & knowledge on how to get
this done. You call us & leave all your HOME work to us!