Benefits of Owning Your Home
Not only is owning a home one of the biggest financial assets you can invest in, but there are numerous other financial benefits. As opposed to the days of paying rent that you will never see again, mortgage payments allow you to build equity ownership interest on your home. Real estate has a long-term, stable growth in value as median single-family home sale prices have increased on average 5.2% each year from 1972 through 2014. Therefore your home will appreciate over time.
In addition, there are tax benefits and savings to owning a home. The U.S. Tax Code allows you to deduct the interest paid on your mortgages, property taxes and also some of the costs involved in buying a home. Similarly, the equity built on your home is a ready made savings plan. When you finally decide to sell, you can make $250,000 ($500,000 if married and filing jointly) without owing any federal income tax, as long as you have lived in the home for at least 2 out of the last 5 years.
The most significant of all of these benefits is the freedom and stability that come with owning your home. You’re able to design as you please and have the certainty that you always have a place to come back to. Nothing tops that.