Reasons why owning a home a Great Idea

Unchanging Monthly Housing Costs When you rent, you can expect rent to increase every year – maybe even more often. But with a fixed rate mortgage when you own a home, monthly payments are relatively the same for 30 years. Even with adjustable rate mortgages, payments will remain within predictable ranges for life of the loan.  

Forced SavingsOften people are not the best at saving money, but a home can be like an automatic savings account. You can add savings in two ways: Each month a portion of mortgage payments is applied towards the home’s principal.

 As well, your home typically appreciates over the years. Average appreciation on is roughly around 3 to 5 percent today, but that can vary with some years potentially seeing some depreciation. However, over longer periods of time, home ownership has historically been one of the very best financial investments.

 Income Tax Savings Most of the interest and property taxes you pay in a given year can be deducted from your income, reducing taxable income and how much you pay out each year to the government.

So consider how much rent might increase over 10 to 30 years from now, with no investment in your own home (Appreciation, Tax Savings, and Stable Costs).  So which makes more sense, renting and paying off someone else’s mortgage and building their equity, or owning your own home and investing in yourself? Food for thought.

 

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