Different people buy houses for different reasons. Here are some significant advantages that home ownership can bring you.
- Tax deductions: For both federal and state income taxes,mortgage interest and property tax obligations are usually fully deductible. And many closing costs, including points paid and fees for your loan application and appraisal may be deductible as well.
- Appreciation: Homes are usually considered a safe and steady investment with rising. Harvard University’s Joint Center for Housing Studies found that the longer one holds the house, the higher rate of return it gets.
- Equity: The portion of property that is actually owned, also rises over time. A first home often leads to a second. Equity buildup and appreciation in the first home helps in the transition to a second.
- Borrowing power: For those owners who choose to stay put, equity still comes in handy. It can be used to secure a loan or obtain a line of credit.
- Stability: Renters usually have no idea of what they will be paying a few years from now. On the contrary, home owners with fixed-rate mortgages essentially have the payment for up to 30 years.
- Freedom: You can plant a tree and see it grow. You can own a puppy without worrying about the landlord. You can cultivate a family and see it blossom.