Owning a home was once the greatest symbol of the American Dream. And although the American Dream has changed a bit over time, home ownership remains an important part of what it means to be a successful American. But more than just the pride that you can take in having achieved this dream, home ownership gives you a number of other benefits that can ease your daily life and help you prepare for your future. While there are obvious financial benefits to owning your own home (as opposed to renting), there are also other advantages.
Here are some of the advantages of home ownership:
Ã¢â‚¬¢Tax deductions. There are all sorts of tax deductions which are available to home owners that aren't available for people who rent. This allows you to save money every single year that you're a home owner. These deductions include mortgage interest and property tax deductions. There are also certain tax tricks in the future when you sell your home.
Ã¢â‚¬¢The money that you spend on a home mortgage goes towards a home that can eventually be yours to sell, rent or will to your kids. The money that you spend on rent just disappears to your landlord's bank account.
Ã¢â‚¬¢The value of your home will almost undoubtedly increase. There area always ups and downs in the market, but home values across the nation have consistently risen. This means that you'll be your home today and it will be worth more than you paid for it at some date in the future. And looked at from the other side, the home you're renting will also be worth more, so your rent can go up in time.
Ã¢â‚¬¢You can use your home for future loans. When you have some of your home paid off, you are able to access loan money against the value of the home. This allows you to get lower interest rates than you would receive from private loans (or credit cards) which are all that might be available to you as a renter. Even if you don't get a loan against your home, home ownership improves your credit and makes it easier to get better rates on private loans.
Ã¢â‚¬¢You own your home so you can make changes to it to really make it yours. When you rent, there are limitations on the changes that you can make at the home. Often, you can't hang shelving or even paint the walls, so your home lacks personality. Home buyers don't have these concerns.
Basically, if you think about all of the things that you dislike about renting a home (or apartment), you'll find that they are problems that disappear when you buy your own home. With home ownership, you're no longer throwing your money away to a landlord who controls everything about the home. You're establishing good credit and making a lasting investment. And the truth is, there still is some value to the old American Dream and you can take pride in home ownership.