The Benefits of Home Ownership Over Renting

You woke up one day and decided to stop procrastinating and actually purchase a home - one of the biggest, most important investments of your life. Congrats! That's a heady decision! There's a dizzying array of choices in front of you -- Which neighborhood? Which agent? Which lawyer? -- But one of the most significant decisions is whether to rent or buy. Owning a home is not only the foundation of the American Dream, it's also a sound financial decision. Believe it or not, buying is cheaper in the long run.

Unlike renting, mortgage payments have an end game (far as that may seem at times!). Each payment gives you that much more ownership of your domain. Over time, as your mortgage balance is reduced, equity builds ? even if the value of your home hasn't risen. A fixed rate loan also provides stability ? the payments you start with are the payments you continue to make, providing a safeguard against inflation.

You can purchase a home with as little as 3% down, something that isn't possible with other significant investments. It's also easier to apply for future loans if you already own a home, and building equity on your home will allow you to eventually borrow against it.

Many states offer tax advantages for homeowners. For some homeowners, all or parts of your real estate tax and mortgage interest may be deductible from your income tax ? check with your accountant.

There are advantages to home ownership that go beyond the financial. When you own your property, you can add whatever aesthetic touches you like ? add, expand, remodel, and redecorate to your heart's content. Not to mention the personal pride and piece of mind that comes from owning property you can keep in the family and pass down through generations.