The past few years has left some people wondering, why buy a home? Why when you hear the horror stories of markets crashing, home values underwater and home owners facing foreclosure, would you want to buy a home?
When you buy a home there are tax advantages. Effectively, homeownership provides an excellent tax shelter. But there are more reasons to trade your rent payment for a mortgage. Buying a home for a tax advantage isn't how you should look at it. Consider thinking of it this way, you need a place to live. Receiving a tax advantage for the place that you choose to live is just a bonus.
Another reason owning your own home is a good idea, it gives you more freedom and the opportunity to create a living environment exactly how you want it. There's no consulting with landlords to see if you can do something to the home.
When properly used, a home equity loan can be a better way to carry credit. That's because home equity lines can have lower interest rates and are also deductible whereas typical credit card interest is not.
Homeownership provides a sense of stability and security. Instead of wondering when the landlord might decide to sell the home, you are in control of that decision. Additionally, homeownership provides immeasurable values of belonging to a community. Also, as a homeowner, you'll have a greater influence on community affairs.