A home has historically been a hedge against inflation. When
you have a mortgage with a fixed rate, you know what your
payments will be. When you rent, your budget can take a hit
when the rent increases. A home can give your family
stability and security because you can raise a family in the
same neighborhood through the years.
Investment and Equity
When you make payments toward your house, you are purchasing
a major possession, whereas when you pay rent, you own
nothing. If you are fortunate to buy a home that increases
in value, which they historically do, you will have equity
that you can tap into to make improvements, create a college
fund or use for emergencies. Even in a down market, if you
hang on to your home for the long run, it's a safe
investment that is likely to grow.
You can make major improvements to your property and do with
your home as you wish. If you move into a home with a pink
tiled bathroom, you don't have to try to disguise it or work
with what you have. Permanent improvements increase the
value of your home and enhance the joy of living in
something that's truly all your own.
Owning a home provides numerous tax shelters that can
significantly reduce your tax burden. You can use mortgage
interest and property taxes as a write-off. If you use a
portion of your home for business, your home office will
also yield deductions, such as depreciation and some
improvements. As a rule, the earlier you are into your
mortgage, the more interest you may each month and the
greater the tax break.
Low Interest Rates
Compared to past decades, interest rates are at historic
lows. The lower the interest rate, the more house you may be
able to buy with a lower payment.
When you own a home, you also own the property on which it
sits. A garden or yard where you can relax, grill your
dinner, plant roses or vegetables can be just as enjoyable
as your abode.
Neighborhood homeowners typically have a greater voice in
policy-making than renters who tend to be more transient and
not as firmly routed in the community. Issues concerning
land development, local schools, zoning and traffic can be
influenced by homeowners through neighborhood associations
Jay Delahousay has been a broadcast
television advertising creative for more than 25 years. Her
work for ABC, CBS and Sony Pictures Television has appeared
on radio, on air, in print and outdoors. In addition,
Delahousay has more than 30 years experience in marketing,
graphic arts production, commercial photography and design.
Delahousay attended University of California, Los Angeles
and Los Angeles City College.