There are a number of reasons why buying a home is the American dream. There are advantages to owning your own home. Your family will be able to take advantage of good educational, they will probably have better health, and there are many social advantages. And don’t forget the financial impact.
But today we’ll talk about the financial advantages of owning your own home.
Number one reasons is that buying is cheaper than renting. As I said before, if you’re renting you are still paying a mortgage. It’s just that you’re paying landlord’s mortgage – not yours. And also it is putting extra money into their pockets.
There are many tax deductions currently that you can take advantage of when you are a homeowner. You can deduct the interest on your mortgage, also the real estate taxes. You can also look at home ownership as being forced savings.
You will be paying housing expenses whether you own or rent. But if you own your home, you are building equity in the property and the value of the house almost always goes up in the long run.
Speaking of property values going up, a recent survey shows that home prices are expected to appreciate over 3% per year over the next five years for a cumulative growth of over 17%. I think that’s a little better than you will find on a CD.