Benefits of Dream Home Ownership - The Advantages of Becoming a ...

What are the major benefits of homeownership? This is a question that I am asked frequently. I am sure that people will all have different opinions and highlight various benefits that they feel are the most important. Here are four key points that I feel are often over looked.

First let's take a look at the tax advantages. Homeownership allows the deduction of not only mortgage interest but property tax as well. Homeowners are eligible to deduct mortgage interest and property taxes from their federal income and in many cases their states' tax as well.

The next advantage would be equity. Equity is the difference in what you actually owe on your home and the current market value. The equity in your home increases when you pay down the balance on your home. It also increases as your home appreciates. Over time the equity in your home could become rather large. You are the one who gets to take full advantage of this, not the landlord. This money is yours to do as you wish, however the only way to get it would be to refinance your house or sell it.

Another major advantage of owning a home would be what I like to call the housing cost stability issue. This is simply explained by the fact that typically throughout the US rent paymenst tend to increase year in and year out. Compare this to mortgage payments which in most cases stay the same throughout the life of the loan. Taken over a 10 or even 30 year period and I am sure that you will have a substantial payment increase.

Being a part of the community or neighborhood is another benefit of owning a home. This gives your family the chance to feel connected to the community. You feel a sense of pride in being able to contribute to your neighborhood, attend your child's school functions, and purchasing from the local merchants. Everyone knows you or soon will by name because you are a fixture in the community.

The final advantage to homeownership is that the home is yours. You are free to do the landscaping as you wish. You can paint and decorate anyway that you like. You are the lord of your land.