The decision to buy a home is one of the largest financial decisions anyone will ever make. Most of the time, this decision is driven by emotions. But, what are the benefits to owning a home? The most obvious benefit to home ownership is just that...ownership! Unlike renting, your monthly payment is actually allowing you to purchase instead of "borrowing" something that will not belong to you.
The most measurable financial benefit to homeownership, according to Barry Nielsen of Mortgage Graphics, is price appreciation. Price appreciation helps build home equity, which is the difference between the market price of the house and the remaining mortgage payments.
The second largest financial benefit of owning a home is tax savings. You can deduct the annual interest paid on a mortgage from your income. There are no tax benefits/savings for your rent payments. Obviously, price appreciation is the largest benefit to owning your own home but there are many intangible benefits such as peace of mind and the security and pride that come with home ownership.
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