Whether you choose to rent or own a home will depend largely on your particular lifestyle and financial situation, and it’s a decision you’ll likely arrive at with the help of a financial adviser and/or mortgage professional. If you’re wondering whether owning a home is a good option for you, here are several benefits of owning a home that you might want to consider.
Money you’ll see again
This one is rather straightforward: When you rent, you are handing money over to you landlord, essentially building equity for your landlord. It’s money that you’ll never see again. When you make a mortgage payment, on the other hand, you are essentially building equity for yourself. Yes, making a mortgage payment may feel just like making a rent payment, but making that payment gives you increased ownership of where you live—something that a rent check can’t do.
Lower mortgage interest rates
Mortgage interest rates have been on a slight decline in recent years. In January of 2011, for example, the average interest rate on a 30-year home loan was about 4.81%, while in January of 2016, that rate has fallen to about 3.88%. It may not seem like a major difference, but that can easily translate to spending over $100 less on your mortgage payment every month. Today’s lower mortgage interest rates are not a reason on their own to buy (you still have to save for that down payment, after all), but they certainly make buying more sensible than ever.
Did you know that the U.S. government actually encourages home ownership through tax policy? When you own your home, your mortgage interest and property taxes are tax deductible.
Stable monthly payments
When you opt into a fixed-rate mortgage payment contract, you can expect to pay a certain amount on your mortgage payment every month for the entire duration of the loan. When you pay rent, on the other hand, you never know when your landlord might decide to raise rent rates. Ultimately, buying a home offers you more control over how much you pay for housing every month.
Make your home truly yours
This is likely one of the first benefits of home owning that you had in mind. It can be difficult to personalize your space and make it feel like a home when you’re renting. But when you buy a home, you can choose the paint, the trim, the window treatments, the hardware, the landscaping, and so much more. In addition, you aren’t tied to a property management company’s rules and schedule when you live in your own home. Overall, owning a home makes for a home that feels, well, more like a home.