Advantages to Home Ownership

Advantages to Home Ownership

Whether you are looking for more space to raise a family or the per-

fect place to make your own, there are many advantages to owning

your own home, ranging from the purely personal to the very practical. 

For many people, the motivation for home ownership is primarily

financial. Owning your own home is a first-rate investment for a number

of reasons:

Scheduled Savings

When you buy a house, your monthly mortgage payments serve as

a type of scheduled savings plan. Over time you gradually accumulate

what lenders call “equity,“ an ownership interest in the property that

you can often borrow against or convert into cash by selling the house. 

In contrast, renters must continue paying rent to a landlord for as long

as they rent, without the opportunity to build equity.

Stable Housing Costs

Another advantage to home ownership is that while rent typically 

increases year after year, mortgage payments can remain unchanged 

throughout the entire repayment period. In fact, because of the effect

of inflation, over the years you pay the same amount but with devalued 

dollars. So, what may seem like a substantial payment now will become 

very affordable after cost-of-living increases.

Increased Value

Houses typically increase in value, or “appreciate,” over time. It’s not 

unusual to find a house that sold for $150,000 fifteen years ago to be 

valued at much more than that amount today. This increased value is

as good as money in the bank to the homeowner.

Tax Benefits

Homeowners also get significant tax breaks that are not available to 

renters. Most importantly, interest paid on a home mortgage is usually 

deductible. This factor alone can save you a substantial amount each

year in federal income taxes.

Buying or Selling Real Estate in: Aventura, Hallandale Beach, Hollywood FL, Sunny Isles Beach?