Renting vs Buying a House: The 6 Benefits of Owning Your Home.
Long term there is no question it is more financially beneficial to buy a home instead of paying rent to a landlord. Benefits of Homeownership – Sept 2021
More than 2/3 of Americans own their home either outright or with a loan according to the US Census.
The obvious benefits of home ownership are easy:
having more space for family,
stability and being able to make the house your home.
Other great reasons for home ownership:
1. Build wealth through appreciation – in the past 5 years homes have appreciated in every state in the US. Washington’s appreciation was 52% Nevada 55% Idaho 58% Illinois 15% and West Virginia 12%
2. Gain equity – the more mortgage payments you make, the more your equity in the house grows
3. Taxes – save on income taxes since the government essentially subsidizes home owners by allowing them to deduct interest payments, property tax payments, and closing costs. You may even be able to excluded capital gains income when you sell the home up to a certain amount.
4. Social, health and psychological benefits
1. owning a home makes it more likely the home is kept in good condition providing you with a healthy environment
2. owning a home makes it less likely you’ll be a victim of crime
3. owning a home makes it more likely you’ll make other good life choices
5. Fixed monthly costs for housing
1. most home loans have a fixed interest rate which means that your payment will not change over time excluding items like property taxes and homeowner’s insurance
2. rents may go up, but your mortgage payment will not change
3. as you build equity, you can refinance and further lower your monthly mortgage payment
6. Improve your credit
1. your record of on-time mortgage payments go towards improving your credit score which in turn lowers your cost for many types of insurance and may even open new and better employment opportunities.