How does owning a home save you money? There are tax benefits, financial firmness, and in the long run owning a home is less expensive than renting a house. So if you are on the fence on whether or not to purchase your new home, take into consideration these 4 benefits of owning your own home.
1. Owning a Home Builds Wealth in the Long-run
Buying home that you can afford now can drastically increase your wealth in the future. It is something that we have been taught by family members in the past but do to the uncertainty of today’s market, many people have moved away from home ownership.
2. Build Equity Every Month
By owning a home, you will be making mortgage payments every month. By making those mortgage payments you are essentially reducing the amount that you owe on your home every month. It is that reduction of your mortgage that increases your equity.
3. A Mortgage Is Like a Obligatory Savings Plan
Paying off that mortgage payment every month and reducing the amount that you owe is like a forced savings plan because each month you are building up more valuable equity in your home
4. In The Long Term, Buying Is Cheaper than Renting
The first few years renting can seem cheaper, or more affordable when compared to buying a new home, but over the years as the interest portion of your mortgage decreases it will be lower than what your actual rent payment is now. So instead of throwing away all of your money every month by giving it to your landlord, invest it in your own home so that you build equity for the future.