Why should I buy a house?
1. Pride of Ownership
Pride of ownership is the number one reason people buy a home. You can paint your walls any color you want, turn up the volume on your CD player, attach permanent fixtures and decorate however you'd like. But more than that, home ownership gives you and your family a sense of stability and security, and provides years of enjoyment.
Most people are surprised to discover they can own a home for about the same as they pay in rent. Effective mortgage payments (which is to say your mortgage payment less the tax benefits of owning a home) are surprisingly competitive with rents.
Every time you make a rent payment, you're effectively throwing money away. Mortgage payments, on the other hand, build personal equity. It’s never too early to start building your nest egg, since on average 60% of a person’s equity is held in the property they own. Average net worth of a renter is $4,000, compared to $184,000 for a homeowner.
Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated.
5. Mortgage Interest Deductions
Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment. Consult with your tax accountant on the full tax benefits you can gain.
6. Tax Benefits
Owning a home offers many tax benefits, and although we are not allowed to give specific tax advice, we can tell you that most expenses related to mortgages are tax-deductible for many people.