Top 5 Financial Reasons to Own a Home

1. Homeownership is a form of forced savings – Paying the mortgage each month allows the homeowner to build equity in their home that they can tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college. As a renter, the landlord is the person with that equity.

2. Homeownership provides tax savings – Owning a home can help save on taxes. A homeowner may be able to deduct the mortgage interest, property taxes, and profits from selling the home. The wise homeowner will check with his accountant first to find out which tax advantages apply to him in his area.

3. Homeownership allows the monthly housing cost to be locked in – When a home is purchased with a fixed-rate mortgage, the monthly housing cost is locked in for the next 5, 15, or 30 years. Interest rates have remained around 4% all year – some of the lowest rates in history. The value of the home will continue to rise with inflation, but the monthly costs will not.

4. Buying a home is cheaper than renting – According to the latest report from Trulia, it is now 37.4% less expensive to buy a home than to rent in the US. That number varies throughout the country but ranges from 6% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.

5. No other investment lets you live inside of it – One can choose to invest their money in gold or the stock market, but they will still need somewhere to live. The homeowner can wake up every morning knowing that their investment is gaining value while providing a safe place to live.