Owning a Home Vs. Renting
If you’ve recently decided to make the transition from renter to homeowner, you are about to make an important investment in your long-term financial well being. Still on the fence? Consider the following benefits. Owning your own home can allow you to:
When you purchase your own home and make mortgage payments, you accumulate equity in the property. You may borrow against this equity or convert it into cash when you eventually sell your property.
Stabilize housing costs
While rent typically increases from year to year, with fixed-rate and some variable-rate mortgages your payments remain unchanged throughout the term of the financing. The impact of inflation over the years means you pay the same amount, but in devalued dollars.
The opportunity to profit from appreciation
Housing has historically increased in value over time. At the same time as you build equity by making mortgage payments, what you can get when you sell your home may increase over the long term.
Enjoy tax benefits
Homeowners can enjoy tax benefits not available to renters. Portions of the interest paid on your mortgage may be tax deductible, and capital gains when you sell your home are in most cases tax exempt.
Ultimately, buying a home isn’t only about money. Home ownership makes it easier to put down roots in your community, and can give you a new sense of pride in your surroundings. You have full freedom to renovate your space to fit neatly with your family’s lifestyle.