By becoming a homeowner, you will build equity through paying down your mortgage over the years and will likely enjoy a lower cost of living in retirement.
Owning a home is actually cheaper now than renting/leasing. One roadblock to buying a home usually is the inability of many potential buyers to afford the down payment, which is typically 20% of the purchase price.
When you buy, your costs are rather predictable and more stable than renting as they’re ideally based on a fixed-rate mortgage. The interest and property tax portion of your mortgage payment is a tax deduction. There’s pride in homeownership, which also closely ties you to your community.
There are two ways to build equity: With each monthly mortgage payment you make, a portion goes toward reducing the amount you owe on your loan, which increases your equity. In a sense, paying your mortgage is a form of savings, as it increases the equity in your home.
“Owning a house provides you with a valuable asset and financial stability. By purchasing a home, you’ll have an asset that, in many cases, will appreciate in value over time. A $400,000 home today should appreciate in value and may see an increase in value to $500,000.
Live Life Under Your Own Rules
Owning a home enables you to live life under your own rules. Homeowners, don’t need permission to make modification(s) in their home. They can paint any room any color, replace the cabinets, add a deck, or do any other modifications they wish.
Homeownership provides great privacy
This may seem fairly obvious, but it’s worth emphasizing: With a rental, you run the risk of getting kicked out at the end of your lease.
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