Buying a home is a big decision, however there are many reasons why you should consider owning your own home. Pride of ownership, home value appreciation, tax benefits, and building equity are a few of the best reasons to own your own home.
1) Pride Of Ownership
Pride of ownership is probably the number-one reason that people enjoy owning their own homes. It means you can paint the walls any color you desire, turn your music up, attach permanent fixtures, and decorate your home according to your own taste.
Homeownership also gives you and your family a sense of stability and security. It's investing in your future—equity that will grow with you the longer you are in the home.
2) Property Tax Benefits
The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.
3) Home Appreciation
Historically, real estate has had a long-term, stable growth in value. In general, home prices increase over time — providing one of the major benefits of owning a home. The average house appreciates in value around 3.5% each year, but some areas experience steeper increases. In addition, the number of U.S. households is expected to rise 10 to15 percent over the next decade, creating continued high demand for housing.
4) Home Equity
One of the most significant benefits of homeownership is building equity. Instead of your money disappearing into your landlord's pocket each month, you'll be paying into something that can become more valuable over time.
A study conducted by Merrill Lynch found that while homeowners under the age of 35 have equity valued at $53,700 on average, homeowners over the age of 65 have around $212,800 in home equity. If you buy a home now, imagine how much equity you could have by retirement!
Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
Unlike rent, your fixed-rate mortgage payments don’t rise 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 likely increase.
7) You Can Create Your Own Dream House
The home is yours to decorate or renovate any way you want. You can choose the types of upgrades and new amenities that appeal to your lifestyle. If you fantasize about customizing your dream house, purchasing your own home is the only way to make that dream happen.
Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.