Why Should You Own Real Estate?
- You’re Investing in Yourself
- When you own a home and pay a mortgage, you’re basically paying yourself instead of a landlord.
- You Increase Your Equity
- When you own a home, you earn equity with every year that passes. What is equity? It’s sometimes called real market value. When buying a home, the down payment you make is the first real equity you have in the house. Through the years, you earn more equity when the amount you owe on the mortgage is less than the fair market value of the home. Any improvements you make to the house also increases your equity, and if the neighborhood becomes really hot in the real estate game, you really generate equity, and as equity increases, so does your leverage in the credit game. Equity in a home is a great thing to have, and something that can’t be earned by renting.
- Tax Benefits
- Owning your own home provides you with a sizable deduction. Getting to deduct the interest paid on your mortgage from the tax bill at the end of the year is a decided advantage. In addition to mortgage interest, there are deductions for real estate taxes and mortgage insurance premiums.
- 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.
- The Freedom to Do as You Please
- The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.
- Provides Stability
- Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community.
- If you own your own house, you don’t ever have to worry about the owners checking up on you, since you are the owner. You will gain much more independence and privacy when you have your own property.