Benefits of Homeownership

Financial Benefits:

• Lower Cost of Housing.Studies have shown that this is among the top places in the country where it is cheaper to buy than it is to rent. For those who plan to live in a home for at least 7-10 years, the cost of buying will be much less than the cost of renting for the same time period.
• Appreciation and Equity. Not only should the home appreciate (grow in value) over the time it is owned, but the equity (the portion of the property that is actually owned) will rise over time as the loan is paid off. Those who rent do not gain any equity from their payments, and don’t get to enjoy the appreciation of the property.
• Tax Deducations. Homeowners enjoy tax deductions for mortgage interest and for property taxes.
• Borrowing Power. Equity is beneficial to securing loans and for obtaining a line of credit, which allows homeowners to borrow additional funds.

Lifestyle Benefits:

• Stability. Renters don’t know what their rent will be down the road. Homeowners with fixed-rate mortgages know what their payment will be for up to 30 years down the road. Homeowners and their families will have a deeper level of stability in their relationships with neighbors, local businesses, schools, and community organizations.
• Freedom. Homeowners can choose their own interior paint colors, can perform construction projects as they like, and can put holes in their walls. They don’t have to worry about security deposits. They can plant a tree and watch it grow through the years.

Social Benefits

The National Association of Realtors® also has reported on studies showing social benefits of homeownership and stable housing, including the following:
• Civic participation in local communities
• Greater attachment to the neighborhood
• Higher rate of high school graduation
• Higher student test scores
• Higher life satisfaction
• Better home maintenance
• Better health outcomes
• Increased charitable activity.

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