When it comes to buying a home, there can be risks and barriers associated such as the threat of depreciation, being tied down to one place and saving enough money for a down payment. However, a significant thing to remember is that home ownership has both financial and social benefits.
Equity
Renting has often been compared to paying 100% interest, but when you own a home and a mortgage is in place, a portion of your payment goes toward the principal balance on your loan. This builds your equity and acts as a savings account.
Appreciation
Home values have a well-documented history of going up over time. This increase becomes equity you can benefit from when you refinance or sell.
Tax Savings
The government rewards homeowners by providing excellent tax benefits. The interest paid on your mortgage and other home-related expenses can generally be deducted from your income.
Roots
People who own rather than rent stay in their homes four times longer. This providdes an opportunity to get to know your neighbors and connect with your local community.
Happiness
The feeling of owning your own home is unmatched. You can fix it up, make it your own, get a dog or plant a tree if you want. Doesn’t that sound exciting?