Electing to buy a home is one of the biggest housing decisions you will make. When you are considering a move, evaluate the benefits of buying a house before you decide which route to take. The mortgage payment might be lower than your rent, but your rental could include maintenance or yard work. Weigh your options thoroughly so you can make the best decision for your family.
Return on Investment
Home values change with the economy. If you put time and money into upgrading your home, you can increase the value significantly. As the economy improves and home values increase in your neighborhood, your home value could increase. When the value of your home increases, your equity in it becomes an investment in your future.
Signing a mortgage can help you secure your monthly payment for up to 30 years. If you have a fixed-rate mortgage, your payments will not change for the life of your loan. If your mortgage payments fluctuate, it would be in stages for which you can gradually prepare. As a renter, you have no control over the rental rate increases from your landlord. You might have to pay more for rent every year, depending on the economy. Buying a home lets you keep long-term control of your housing budget.
As a home owner, you can deduct the interest you pay on your mortgage every year when you file your taxes. You will need to itemize your taxes to take advantage of this tax deduction. If you have enough deductions to itemize, you might find you can obtain a larger overall deduction than the standard deduction can provide.
Something to Call Your Own
Buying a home gives you something you can call your own. Your monthly payments go toward a mortgage on your own property, something that is building value for you. This is more financially worthwhile than putting money into a landlord's pocket and getting no additional financial benefit.
Freedom to Customize
Owning a home gives you the freedom to paint and remodel however you wish. Although most landlords often are agreeable to garden planting requests and renter landscaping, when you a home, you can create the garden you have always wanted and add a fruit tree in the yard without having to ask for approval.
Tara Kimball is a former accounting professional with more than 10 years of experience in corporate finance and small business accounting. She has also worked in desktop support and network management. Her articles have appeared in various online publications.