A home is most likely the biggest purchase you’ll ever make, and it marks a major step in life. There’s no scientific formula that tells someone when they’re ready to buy, but you should take stock of your financial situation as well as your personal lifestyle. In general, there are a number of advantages to homeownership, both tangible and intangible, that you’ll want to consider.
Every payment you make on your mortgage puts you one step closer to acquiring a major possession. And every improvement you make to your property not only enhances your way of life, but also adds value to your home.
Protection from Inflation
Once you purchase a home, the bulk of your housing costs are not exposed to inflation. That means only your housing expenses that will rise over time with inflation are property taxes, homeowners insurance, and maintenance costs.
Because a home increases in value even as you are paying down your loan, most buyers effortlessly build equity. Equity creates wealth and can help you accomplish any number of financial goals, such as paying for retirement and funding a child’s education.
Your real estate taxes and the interest on your mortgage are deductible from your income tax. For many buyers, that tax break can go a long way toward making home ownership just as affordable as renting.
For many people, but certainly not all, home ownership simply makes life more enjoyable, whether it’s the pride that comes from decorating and maintaining your home or the knowledge that your family will grow up in the neighborhood of your choice. Homeownership is still the American dream.