There are several financial reasons why buying and owning a home are good for you. Besides this last recession, most of the time a home increases in value over time. With each mortgage payment you make, the amount of the mortgage goes down and your “equity” in the home increases, all the while the value of the home is increasing, too. This means owning a home is like a forced savings account.
When it comes to paying income taxes, people who own their own home are allowed to deduct the amount of interest that they paid on their mortgage, along with the property taxes on that home. This means more money in your pocket and less goes to Uncle Sam.
Studies of people who own their own homes versus those who rent show a lot of other positive outcomes for homeowners. Take a look at the list below:
- Homeowners tend to be more involved in community & national
- They have a greater awareness of the political
- They have a greater attachment to their neighbors and neighborhood
- Children living in homes that are owned have higher test scores and higher graduation rates
- Children living in homes have lower teenage delinquency rates
- Homeowners report an increase in positive outlook on life
- Homeowners also report higher self-esteem, happiness, and higher perceived control over their lives.
- Homeowners are less likely to become crime victims
- Housing prices are higher in neighborhoods with higher rates of homeownership
- Homeowners make better employees by taking less time off work
Homeownership is the American Dream. It’s one the things that make this such a great country!