Many individuals struggle with the decision of whether to rent or own in their lifetime. However, the American Dream of homeownership is still alive and strong
Owning a home comes with personal reasons that are unique for each buyer. However, there are many commonalities, such as building wealth, gaining creative freedom, and creating a space to memories.
Still wondering if you should rent or buy? Here are a few benefits of owning your own home instead of renting.
Homeownership builds wealth.
A home is one of the best investments you can make in your lifetime. When you buy a home, you can build equity.
Each month as you make your mortgage payments, you own more and more of your home outright. When you are a renter, your monthly rent payments don’t amount to any form of ownership.
Homeownership is a form of forced savings.
Paying your mortgage each month allows you to build equity in your home. This equity can later be used for renovations, to pay off debt, or even send a child to college.
Examples of debt that can be paid off include credit card debt, student loans, and car loans.
Homeownership provides tax benefits.
One way to save on taxes is to own your own home. You may be able to deduct your mortgage interest, property taxes, and profits from selling your home. However, make sure to always check with your accountant or financial advisor first. This way, you can find out which specific tax advantages apply to your situation and your area.
Homeownership allows you to lock in your monthly housing cost.
When you purchase your home with a fixed-rate mortgage, you lock in your long-term monthly housing cost. This means no surprise rent increases. The value of your home will continue to rise with inflation, but your monthly costs will not.
Some argue that renting eliminates the cost of taxes and home repairs. However, potential renters must understand that rent payments account for these expenses, along with a profit margin for your landlord.
Homeownership increases your net worth.
A homeowner’s net worth is nearly 40 times greater than that of a renter, per the National Association of Realtors.
Homeownership lets you have choices.
As a homeowner, you can really make your space your own. The ability to decorate and landscape the way you want is a major benefit for homeowners.
Every improvement you make to your home will increase its value. This will benefit you when you sell it in the future.
No other investment lets you live inside of it.
You can choose to invest your money in gold or the stock market, but you will still need somewhere to live. In a home that you own, you can wake up every morning knowing that your investment is gaining value while providing you a safe place to live.
Bottom line: NOT owning a home could cost you a lot of money. Ready to learn more? Contact your Waterstone Mortgage loan originator, or find one near you.
