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Advantages of Owning a Home Instead of Renting

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By : Sonia Smith    99 or more times read
Home buying and ownership has been a rite of passage into adulthood in the United States. Although real estate is a good investment and this is a goal for most people, it is a good thing to dig deeper and find out if owning a home is a financially better idea than renting one. While not every situation is the same, in most cases, home ownership comes with several advantages than renting.

Here are some advantages of home ownership instead of renting:

  1. You will build equity on your home over time, especially if the value of your house appreciates. Furthermore, buying a home is cheaper in the long run.

  2. As a homeowner, you are free to modify your home to fit your needs and taste. You do not have to ask permission from a landlord if you want to repaint the children’s rooms.

  3. Being a homeowner, you will have tax advantages that renter will not enjoy. You can deduct the mortgage interest amount and property taxes that you have paid when filing your federal income tax. Find out from your tax adviser if your state allows this since tax regulations vary from state to state.

  4. If you opt for fixed-rate mortgage when buying a house, the payment is locked-in for the life of your loan and your mortgage will not go up. While a rent is different because you will often be at the mercy of your landlord and rent rises every year in most areas.

  5. Another great thing about owning a home instead of renting is it is more fulfilling to own a property instead of just renting one. Home ownership is permanent and provides you with many happy years living in your home.

  6. When you own a home, you are free to do upgrades and improvements to it and you will enjoy the benefits of the improvements that you make. Additionally, you will get to enjoy living in the environment that you created and not some landlord.

  7. In home ownership, in case of emergency, you can avail of a second loan on your home until the situation stabilizes.

  8. Home ownership serves as an automatic savings. You will be able to accumulate savings in a couple of ways, such as every month a part of your payment goes to the loan principal and second, the value of your home appreciates up to five percent. Over time, history shows that owning a property is one of the best financial investments to consider.

  9. Home buying helps rebuild your financial standing by making on time monthly mortgage payments. You can quickly establish your credit history to the next level, meaning you get to improve your credit each time you make your payment on time.

  10. A home is one of the most secure investments you make in your life even during recession, sales declines or war. Prices have steadily climbed upward and if you stay in your home or keep it for investment, most likely you will earn considerable capital gains on your initial investment.
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