Benefits of owning a home vs. renting: Investing in yourself
Homeownership has long been baked into the people’s vision as a part of the American dream. It has an emotional side as it brings a sense of stability, belongingness to the community, and pride of ownership. Taking a leap into buying your first home may seem daunting, but homeownership brings intangle benefits. Here is why!
Invest in yourself, not your landlord
While making monthly rental payments, you are adding to the wealth of your landlord. Instead, owning a home offers the prospect of building wealth as the price of the house appreciates over time.
When you make the mortgage payment, a principal amount goes towards the balance on loan rather than the interest building more equity over time.
Stable monthly payments
Owning a home prompts ample stability in terms of monthly payments. A fixed-rate mortgage means you will be paying the same amount for principal balance and interest until the mortgage is paid off. Instead, the renters may be subjected to an annual increase in rents with each new lease signing.
Mortgages are cheaper
Monthly mortgage payments are often cheaper than what one would expect to pay for rent.
Homeowners are eligible to deduct mortgage interest rates and property taxes on their tax returns each year, unlike renters. The potential savings can make the cost of owning a home less than renting.
Homeownership gives you the freedom to personalize the place in coherence with your aesthetics. In contrast, the renters are strictly limited to customizing their living space.
Boost credit score
From paying car loans to educational loans, owning your own space builds a positive credit score faster by adding consistent on-time mortgage payments.