Home ownership brings along the pride of being a home owner, social status, and not to mention many monetary benefits.
1. Tax breaks. The U.S. Tax Code lets you, the home owner, to deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
Related article: The Tax Benefits of Home Ownership
2. Appreciation. Ownership of real estate provides long-term and stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to increase 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. When you sell your home, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax. That's another tax break.
5. Predictability. Unlike rent, your fixed-mortgage payments are fixed over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate and remodel any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.