The security of owning the roof over your head, the feeling of contentment, satisfaction and fulfillment -- it's the wish for most Americans. It's what they call the classic American dream -- homeownership.
Owning a home is the biggest and best investment one can ever make. It requires extraordinary commitment not only monetarily, but time and attention as well.
There are disadvantages that come with owning a home like maintenance, financial matters, risk of losing equity and the risk of foreclosure. However, the benefits that comes with owning your own home trumps the disadvantages.
-It's the best investment. The value of your home appreciates which means that if you decide to sell, its price will be much higher than your purchase price. Homes appreciation varies from year to year and is based on market conditions.
-the mortgage interest deduction!!! All of the interest and property taxes you pay in a given year, can be deducted from your gross income to reduce your taxable income.
-having a mortgage and paying on time, helps build a strong and healthy credit report. Credit drives the buying "wheel".
-It is a form of forced savings because you have to make that monthly mortgage payment! You also need to set aside money for future repairs or improvements.
-It can help you plan for the future with regards to your finances because mortgage rates are fixed unlike yearly increase in rent.
-It gives a sense of permanence where your family can live and grow. Emotional security goes with this.
-It gives you and your family security and piece of mind knowing that you have a home to call your own.
-It develops lifelong friendships.
-it develops a sense of identity for your family, especially the children. Your family becomes a part of a community
-It eliminates landlord hassles.
-It gives you the freedom to redecorate, remodel, make improvements, have pets, change the color or the décor of your home to your own taste and as you desire.
-It gives privacy, unlike renting where landlords can have access.
-It develops a sense of community. Homeowners become attached to neighbors, become interested and involved in events and work towards the betterment of the community to protect and preserve property.
-you can borrow against your equity because the value of your home increases against what you owe on it.