3 Reasons I Prefer Owning My Home to Renting It
3 Reasons I Prefer Owning My Home to Renting It
Owning a home comes with benefits you just won't get with renting. Find out some perks of being a homeowner that could convince you to buy.
1. Building Equity with Every Payment
One of the single biggest reasons that I prefer owning my house to renting is because every payment I make grows my net worth -- and that wouldn't be the case if I rented a property.
When I pay my mortgage lender every month, my principal balance goes down. I build home equity, which is the percentage of the home I own beyond the bank's interest in it. And I will eventually own a valuable asset free and clear, which should ideally have gone up in value.
- It can be harder to become rich without owning a house.
- Paying into your house is a type of forced savings.
2. Mortgage Interest Is Tax Deductible
The government is subsidizing my housing costs by allowing me to deduct mortgage interest on loans up to $750,000.
Deductible interest means that my taxable income is reduced by the amount of interest paid. This is a significant benefit of owning a home.
- You need to itemize to deduct mortgage interest.
- Many people don't itemize because they claim the standard deduction.
3. Customizing Your House
As a homeowner, you have the freedom to personalize your living space according to your preferences.
Owning a home allows you to design it exactly the way you want it and make it your own, which can be a rewarding experience.
- Personalized design is a major advantage of owning a home.
- Consider financial readiness and lifestyle factors before committing to homeownership.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.