How you can financially benefit from owning your own home…
Home ownership is often referred to as the “American Dream.” Whether or not it’s your dream or your reality, it’s important to understand the financial benefits of owning your own home. You must live some where and when it comes to renting or owning, there are a number of advantages to owning.
The most obvious advantage is in terms of taxes. Your mortgage interest is deductible from your Federal income tax. Therefore, if you can deduct a 100% of your mortgage’s interest, then you essentially have an interest free loan. This is a huge advantage over renting.
With property values at their lowest levels in many years in many regions, your home is likely to appreciate in price in the near and distant future. This could mean you will actually profit the day that you decide to sell your home.
Property is also a good hedge against inflation. Consider this, your house has value because provides an area in which to live. If you translate this into a rental fee per month, you house can bring in $X per month. If you assume that inflation causes rents to rise, then your house has a greater earnings potential and thus a greater value to an investor/buyer.
Lastly, if you’re hesitant to buy a home because it may tie you down to certain location, you can always rent out your house. Nothing says that you must live in X location after your house is bought.