Benefits of Buying a home

There are many benefits to buying a home instead of renting a home or renting an apartment. One such benefit is the fact of the investment that you are providing yourself. The money you pay each month actually goes towards something and you are not just throwing your money away each month as you would renting. Paying a monthly mortgage payment helps you to build equity in a home in a property that should appreciate and grow in value each year.

Subject to certain limits, the interest you pay on a mortgage that is your primary residence or second home is deductible.

For many people one of the biggest benefits of owning their own home is being able to whatever they want. They are able to paint the walls any color they choose, plant a garden, landscape the yard to their liking, etc.

Once you have built up enough equity in your home, you can borrow against that equity for any purpose you chose. This really comes in handy when it's time to make home improvements, go on a vacation, consolidate debt or send the kids to college.

When you own your own home, you can also own pets without asking permission or paying large deposits.

In an investment terms, a new home might come at a fraction of the true cost of the home. Once you own a home, any appreciation the property accrues belongs to you. If you purchase a home for $300,000 but only put 10% down, your investment is only $30,000. If after 5 years, your property gained an extra 10% in equity, you would have a 100% return on your original investment.

» DISCLAIMER: The information contained in this article on 'Benefits of Buying a home' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.