The individual that buys a home is really buying a lifetime investment. When the homeowner makes a monthly payment that payment increases the amount of the home that the owner has control over. Everytime a homeowner makes a home improvement that improvement increases the value of the home and that increases the value of the equity the homeowner has invested into the property. If the individual were just making monthly rent payments then there is nothing to show for the money
paid out each month.
Every year tax time rolls around and these days we can use all the help we can get when it comes to paying taxes. Home ownership is a way to help. The homeowner can deduct the real estate property tax, some or all of the interest on the mortgage and the cost of insurance for the property. Plus, if you operate a home office from your home there may be another way the homeowner can take some deductions. You can't do this when you’re renting.
When an individual first purchases a home the mortgage payment includes both interest and principle payments. In the beginning the borrower is paying mostly interest but as time passes the majority of the payment goes on the principle. This is where the saving part comes in at because by this time your payment will be mostly princple and that payment will be less than a rent payment, since market rent continues to increase.
A homeowner has leverage when a home they purchase with a small percentage down and the home appreciates in value by that same amount then the homeowner has increased their equity in the home by 100%. Plus, when an individual owns a home they have buying power because they can, although not recommended, go out and get a loan if they are in a position of need. It is sometimes easier for a homeowner to get a loan when they own a home.
A person that rents a home needs to ask the landlord for permission every time they want to paint or plant a garden or put up a swimming pool. Whereas, a homeowner does not need to ask for permission from anyone. They can paint their walls any color they desire and have their entire yard as a garden if they wish. A homeowner has the freedom that a renter does not have when they own their home.
The homeowner has the same payment month after month, year after year, as long as they have a fixed rate mortgage. This gives the homeowner a sense of stability. They know what to expect every month. Whereas a renter, may not know what to expect from month to month especially if they are not under a fixed lease agreement. Every year the cost of living continues to go up and that means the cost of market rent as well. So, by owning a home the individual has a good feeling knowing their payment is not going to change regardless of how much the cost of living goes up.
There is nothing like the feeling you get when you own your home. It is your home. You worked hard to get it and now you can feel good that you have made a great accomplishment.
article credit ; ohio.edu/people