There are certainly a number of important factors to consider if you are thinking about purchasing a home. Although home ownership brings with it quite a few attractive long-term benefits, the initial commitment and costs are surely not something to scoff at.
For one, you have to be fairly secure in both your home life and your work life; unlike renting, it isn’t possible just to get up and go with little or no notice at all. And secondly, the costs associated with buying a home can be significantly higher than renting, at least in the first few years. But if you are financially secure enough, there are few investments that will see the kinds of returns and long-term benefits as home ownership.
The Financial Advantages
Tax Deductions. Unlike renting, many of the payments you make toward the purchase of your new home are fully tax-deductible. Especially in the first year of home ownership, you may find that some of the costs associated with the purchase of your home are also tax deductible, not limited to the closing costs, loan applications, and that sort of thing.
Appreciation. Although there are no absolute safe bets when it comes to any financial investment, the housing market has seen consistent growth in the past, even in the face of wide-spread recession. The median house price in the US has increased every year without fault, leading to significant gains by the end of the mortgage period.
Equity. You’ve probably heard this term thrown around once or twice. When it comes to home ownership, this is the buzzword above all other buzzwords. Each payment you make toward your mortgage each month goes toward its equity; the equity is equal to the current value of your home, minus the remaining balance of your mortgage.
You can think of the equity as a kind of forced savings account; it's money that you can’t access directly but it goes toward your total wealth and allows you to take out loans against it, or even get a line of credit.
The Personal Advantages.
Stability. Above all else, home ownership brings with it a desirable feeling of stability. As a renter, you can’t be guaranteed the same monthly rent indefinitely. But as a homeowner, you will always have a pretty good idea of what your monthly costs will be for the remainder of your mortgage period.
More to the point, it means that you will always have a place to call home. You can put down solid roots and build something for your future and that of your family. It also gives you added authority in terms of developing your community and becoming involved.
Freedom. You finally have your own space! There isn’t a downstairs neighborhood banging on the roof with a broom handle. No landlord to say you can’t have a dog. This is your home and you can do what you like with it. This means that you are free to install permanent installations, paint the walls whichever color you see fit or take out a wall if you want. It’s your prerogative.
Of course, the financial freedom that owning an asset like a home cannot be understated. You can levy your homes equity in order to qualify for favorable terms on loans or lines of credit. This can be a powerful asset in the face of some of life’s more unpredictable events.
Home ownership surely isn't for everyone. It requires a certain level of stability to begin with; you need to be reasonably sure that you will be living in the same place and have stable employment for at least the next several years. If that sounds like you though, there aren't many things that give you the same welcome sense of satisfaction than owning a home and having a place to truly call you own.