If you're like most people, you dream of owning a home. You see a nicely sculpted backyard, the perfect kitchen and everything else that makes owning a home so great. That, and yelling at the upstairs neighbor who walks like a 300lb. gorilla just gets old. But beyond just pride of ownership and a place to call your own, what are the benefits?
Taxes? Who wants 'em?
One of the benefits of home ownership is that you have tax breaks available to you. The interest that makes up a solid portion of your mortgage payment is fully tax deductible on your tax return so long as the balance on your mortgage is less than the appraised value. A renter would not have this option.
Building equity
As time passes, your home will generally increase in value, creating equity that gives you more financial flexibility to pull need cash out or perhaps trade up to a bigger and better home.
Your payments actually mean something
A renter cuts a check every month and gives it to the landloard. This guarantees a place to live, but the renter will see no financial return on that investment. As a home owner, each mortgage payment represents an investment that continually leads to more equity in your home.
Stability
Both personally and financially, you will find the the benefits of home ownership include a more stable existence. A home represents planted roots in a community. If your mortgage is fixed, you can count on having the same payments month after month after month. A renter is likely to see increased costs every year.
What was that about a place to call your own?
The freedom to paint as you wish, drill holes where you see fit and leave your bicycle on the lawn all hours of the day is just plain nice. Sure, the financial stuff is great, but there's nothing better than knowing your home is...well, yours.
