The tax code allow you to deduct the interest you pay on your mortgage, your property tax, and some of the costs involved in buying a home.
Real Estate has had a long-term, stable growth in value. In fact, median single-family existing home sale prices have increased on average 5.2% each year from 1972 through 2014, according to the National Association of Realtors. The recent housing crisis has caused some to question the long-term value growth of real estate, but even the most recent 10 years that included quite a few very bad years for housing, values are still up 7% on a cumulative bases.
Money paid for rent is money that you will never see again, but mortgage payments let you build equity in your home.
Building equity in your home is a ready-made savings plan. You will be “forced” to save money. And when you sell, you can generally take up to $250,000 or $500,000 for a married couple gain without owing any federal income tax.
Unlike rent, your fixed-rate mortgage payments don’t rise over years while rent goes up typically at the inflation rate. However, keep in mind that property taxes and insurance costs will likely increase.
6.Freedom to customize your space
The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.
If you are renting, your landlord can ask you to vacate your home within 30-60 days if your building is not rent controlled. If you own your home, you can stay in one neighborhood for more than several years allowing you and your family time to build long-lasting relationships within the community. It offers children the benefit of social continuity.