A home has equity potential. When you purchase a home, you are (hopefully) not purchasing something that will depreciate in value. So, if you purchase a home for a certain price you will discover that it value is increased over time. This, in turn, makes the purchase of a home a great investment. Mostly, all people involved in real estate careers will concur with such an assessment.
The investments associated with purchasing a home do not always have to be a long term one. In other words, it is possible to purchase and flip a property as well. How does flipping work? It entails purchasing a home and then renovating it. Upon renovating it, you can place it back for sale on the open market at its new value. This can lead to a great profit in a very short period of time. In fact, scores of entrepreneurs have made their entire fortune based upon the ability to flip properties.
There are also values and benefits to purchasing a home that have nothing to do with equity and finances. There is also such a thing as personal pride that comes with the purchase of a home. Many people that work in real estate jobs will say that the most beaming look in a person's eyes is when the person purchases a new home and realizes he/she has become a new homeowner. Even those that have held real estate jobs for decades will tell you they never cease to be amazed at such a look in people's eyes.
There is also a significant sense of security one can achieve from owning his/her own home. If you have purchased a home and paid the mortgage off completely, the home is yours and no one can take it away. This is probably the most important reason of all to purchase and own one's home.
You can take a mortgage interest deduction on the home. Some people's income tax return always has them paying the government a lot of money every year. Is there a way around this? If you own your own home, you can opt to deduct the mortgage interest that you pay. That will lead to great deductions in the long term.
Then, there is also the ability to take property tax deductions. You could consider this property tax deduction along with the mortgage tax deduction to be considered discounts on the home since you would be paying a lot more money on your income tax without them.
There is always the possibility of procuring a home equity loan when you run into a lot of trouble with your debts. Those that must deal with high credit card interest rates will surely appreciate the discounted interest rate that home equity line of credits deliver. Most involved in real estate careers will point out this is one of the many excellent benefits of owning your own abode.
Paying rent is, essentially, paying the mortgage on someone else's property. Why on earth would you want to do that if you didn't have to?
