The first reason is that you build equity with each mortgage payment. Say you take out a mortgage for $200,000. Every time you make a payment, that $200,000 balance continues to drop and your equity increases. The second reason is that you enjoy many tax benefits by being a homeowner. At the end of the year when it’s time to file your taxes, the interest and other things you’ve paid can be deducted to release your tax burden.
The third reason is that buying a home is actually cheaper than renting in the long term. Say that $200,000 mortgage we talked about has a $1,200 a month payment, and you have a friend who rents a $1,200 a month home. The following year, your mortgage payment will still be $1,200, but your friend’s rent is probably going to go up by $50 or $100 per month, and will continue to increase at that rate every single year. In 30 years, you’ll still be paying $1,200 a month, and your friend could be paying up to $4,000 in rent!
The fourth reason to own a home rather than rent one is that you will establish a solid credit history. Every single time you make a mortgage payment on time, your credit score continues to rise, which helps you in other aspects of life like getting better rates on insurance, cell phone payments, and anything else that requires credit.
Finally, homeownership is healthy for families and the community. Just think about what happens in a home – the word “homemaker” comes to mind. Family comes over for holidays, friends come over for a cookout, neighbors become closer, kids are raised in the home, and relationships get stronger. It’s truly a wonderful thing.
If you have any questions about homeownership or you’re interested in buying a home in the Charleston area, give me a call or send me an email. I’d love to hear from you and help you out.