Home ownership has many advantages - both financial and personal. But buying a home is an important decision. Look at the benefits and the differences between home ownership and renting to better understand if owning a home is right for you.
What are the benefits of home ownership?
- Tax savings.
You may earn significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax and many states' income tax if you itemize your deductions.
- A more stable monthly housing expense.
Your monthly housing loan or mortgage expense can remain the same for the life of your mortgage, depending on the type of loan you choose.
You may build equity in your home over the life of your loan, which allows you to plan for future goals like your child's education or your retirement.
Home ownership is not right for everyone. It may not be the right time in your life or you may not like the commitment associated with owning a home. Here are some differences between renting and home ownership:
- Renters are typically free from maintenance obligations such as repairs or lawn care.
- Home owners often have more freedom in decorating, landscaping, etc.
- Renters can move more easily and more quickly than home owners and there are higher costs associated with buying and selling a home.
- Home owners have a financial investment and may build equity in their home.
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