BENEFITS OF HOME OWNERSHIP | HOMEOWNERSHIP OVER RENTING
To rent an apartment or to buy a house; the answer is clear… we all want to own homes. In the US, owning a home is the ultimate American dream and rightly so. Here are top reasons why buying a home is better than renting, and why you should consider being a homeowner:
The Property is Totally Yours to Do as You Please!
When you own a home, you become the master of that property! You decide to replace the roof, or even make an underground tunnel inside your home. Also, any improvements you make will increase the value of your property.
You Keep all Appreciation Benefits
Homeowners never lose money invested; rather they gain financial benefits from simply owning a home. As their home appreciates, the value of their property rises faster than any stock on the stock market—it’s incredible. For instance, making a 10% down payment of $50,000 for a house that appreciates is so much more valuable than buying a stock for $50,000 that may crash in the future.
You Enjoy Many Tax Benefits
When filing tax returns, homeowners can subtract mortgage interest and property taxes as deductibles. In fact, tax laws provide countless incentives to home ownerships. As such, buying a home—not renting—guarantees a deductible mortgage interest over a nondeductible rent. This is just one of many tax benefits homeowners enjoy.
Rents Rise Faster than Mortgage Costs
As a homeowner, your home purchase often comes with a fixed-rate mortgage. This means that your mortgage payment, however long it lasts, can never change. A renter, on the other hand, faces increased housing payment from the landlord. What’s more, property tax for homeowners is 100% deductible; renters do not have this privilege.
You Own a Forced Savings Account
A mortgage is essentially a forced savings account. When homeowners settle monthly mortgages, a portion of loan principal gets paid down and the equity rises. This forced savings makes the average net worth of homeowners 40 times the average net worth of a renter.