Purchasing a home is a big decision, but it can have big benefits too that renting cannot provide:
- Stability: first and foremost your home is YOUR HOME. A place that you can call your own.
- An investment in your future. Each month you make a payment, you are one step closer to paying off your mortgage loan, and building equity along the way.
- May provide a tax deduction. Each year, you may be able to write off your mortgage interest payments and property tax on your personal residence. There are other potential tax deductions tied to owning a home too. For some, this can be a significant tax savings. Be sure to consult your tax professional to determine what makes sense for you.
- Appreciation of market value. While not all home values rise and fall at the same rate, over time, property values have kept up with inflation and can provide some price appreciation, which is helpful if you want to sell to move to a new location or into a bigger home. The combination of your equity build up and the appreciation in your home value will start you on the path of wealth creation.
- Make it your own. Paint, decorate, remodel….when you own your home, you decide what improvements you want to make.
- No more rent increases. When you purchase a home with a fixed rate mortgage, the payment for the principal and interest on your mortgage stays the same for the life of the loan, unlike rent, which typically increases every year (sometimes significantly!).
- Loan payoff means no more mortgage payment! When you pay off your mortgage, which will happen over time, you will awaken one day and realize the joy of no more mortgage payments!
Compare the cost of renting vs owning with our free interactive calculator.
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