Top 7 Benefits of Home Ownership, Part 2|
by Tim Lockhart
The last few years have been really difficult for the real estate market, and many people are wondering if now is really a good time to buy a home or not. Many other people want to buy a home, but are stuck in the rent trap because the banks continue to tighten their lending standards and shut people out who would have qualified only a few short years ago. This article will discuss the Top 7 benefits of owning a home versus renting. In Part 1, we saw that homeowners enjoy steady payments helping them fight against inflation and the wonderful tax savings we can have by being able to deduct the mortgage interest from our regular income. Now, we’re going to look at the benefits of building equity. We’re now ready for benefit #3.
3. Build Equity through paying down mortgage. Not only can you put more money in your pocket this year by deducting your interest payment from your current income, the principal portion of your payment each month pays down your mortgage balance building equity. Equity in your home is very simply the difference between what your house is worth and what you owe to the bank. Each month, a portion of your payment goes towards paying down the amount that you owe, so it is kind of like a little savings account. When you rent, you are stil