Here are some reasons why you want to own a home vs Rent
1. Tax Benefits
When you pay your mortgage monthly, it includes the interest. That interest is tax deductible when you file for tax. Your property taxes and some of the costs involved in buying a home.
2. Appreciation
Your property will have appreciation. The appreciation is the increase in a home’s value over time. That depends on the local real estate market and any improvements to the home.
The national average since 2001 has shown a steady incline each year of 3 to 5%.
3. Equity
The value of your home – The amount you owe on your home loan = Equity.
When you pay rent, you will never see that money again, but when you pay mortgage every month, that money reduces the amount you owe on your loan. That increases your equity. As your increases in the value by appreciation, your equity grows too. This is how the wealth accumulates through real estates.
Think about, if you own multiple houses, you see how much you could build your wealth this way.
4. Improve Credit Score
When you pay mortgage every month, it shows the consistent payments that you are a responsible borrower. Credit bureau often gives more weight to a mortgage payment history than credit cards.
5. Predictability
The rent steadily goes up. Just like living cost affected by inflation, it doesn’t go down. Unlike rent, your fixed rate mortgage payment don’t rise over the years so your housing costs may actually decline as you own the home longer.
6. Freedom
This is your home. You don’t have to get permission from your landlords what you can or can’t.
You can decorate and change any way you want and choose the types of upgrades.
