For many people, buying a home is the biggest financial investment they will ever make. The advantages of owning as opposed to renting a home may differ from one person to another, but a few of the benefits most commonly associated with homeownership include the following:
- Tax savings: Property taxes and mortgage interest continue to be deductible under the new tax law recently passed by Congress. Homeowners should check with an accountant or tax adviser to determine how the deductions apply to them.
- Payment stability: Fixed-rate mortgages offer steady monthly payments for the life of the loan without the worry of yearly increases associated with renting a place to live.
- Ability to build equity: A portion of each monthly mortgage payment goes toward reducing the principal balance of the loan to build equity accessible when the home is refinanced or sold. Owners can use the equity for retirement, a vacation home or for a child’s education.
- Source of pride and personal satisfaction: Purchasing a home fosters a sense of accomplishment knowing a family has a solid foundation on which to build its future.