Purchasing a home can bring you a number of benefits that have long-term effects on your life. Some of these are the following:
• You own an appreciating asset — From a long-term view, real estate typically appreciates in value. It can be an important part of a strategy to building wealth.
• Stop paying your landlords mortgage —
When you are renting, you are paying the landlord’s mortgage, taxes, insurance, helping the landlord build equity in the property, and even contributing to the landlord’s income.
• Equity grows every month — Each month you live in your home, a portion of your mortgage payment is used to build equity in your home. That is the portion of the value of your home that belongs to you!
• You can deduct mortgage interest and property taxes annually, (Your tax advisor should be consulted)
• Buying is usually cheaper than renting — If you learn more about homes available in your area, you are likely to discover that it is possible to own your own home for approximately the same amount of money as your rent.
• More freedom to paint, remodel, landscape, etc. — If you own your home, you can decorate it in almost any way you want. You can remodel the kitchen or the bathrooms. You can plant trees, shrubs, and flowers on your property.
• (If your home is in an area with deed-restrictions, read the bylaws to better understand neighborhood standards.)