Benefits of Owning A Home
- Pride, comfort and stability. You can customize your home exactly the way you want it to fit your needs.
- When paying money towards the principal on your loan each month, you increase the percentage of your home that you own.
- Mortgage payments remain the same with a fixed rate loan. Rent costs, however, inevitably go up.
- When filing your tax returns, you can deduct the interest you pay on your mortgage.
- You gain from the appreciation on your home. The whole house appreciates, not just your down payment.
- Recent tax law changes allow you to sell your home after 2 years without paying tax on your gain.
Downside of Renting
- In renting, you do not accumulate equity. You are essentially giving away your money each month.
- The landlord benefits from the appreciation values, not the tenant.
- You are at the mercy of the landlord – if your rent is increased, you are subject to the lease.
- You live in a space not designed for you and without your personal touch.
- The landlord benefits from your work and improvements on a house or apartment that you rent.
- Rent payments are not deductable from income taxe