If you're debating whether or not you should buy, perhaps you should keep in mind the benefits involved in being a home owner as they very often outweigh renting.
There are a number of positive aspects of owning a home or property and, in general, buying a home is a very good choice for most people.
Benefits of Owning a Home
Investment - First and foremost buying a home is an investment. Homes generally increase in value with time or "appreciate"; so while you're living in it it's "making you money" so to speak. You have to own the house for at least 3 to 5 years on average before you can expect any equity to start building; which leads us to our next reason for buying a home...Equity/Appreciation - Equity is the amount your house is valued at less what you owe against it. If it's paid off, then obviously you have 100% equity or the total value of the house. If you owe $20,000 and the home is worth $110,000 then your "equity" is approximately $90,000.
This equity can be used to acquire loans, referred to as home equity loans, instead of charging on a credit card. The difference is that a home equity loan has a much lower interest rate (many times up to 25% less) than if you were to charge something.
As far as the appreciation part, your home is an investment. While there are times when housing values fall, for the most part the value of a home or property increases over time. The fact that you buy an item of one price and it increases in value makes it a financial investment of some type.
Tax Deductions - although these taxes can change according to time, laws, locations, and so forth there are generally laws in place to entice buyers. The IRS Publication 530 refers to tax benefits and information for first-time home buyers. Many areas offer limited property taxes which increase slowly according to the rate of inflation or by a certain percentage per year; such as in California.
Pride of Ownership - Probably one of the biggest and best parts of owning a house is the pride of ownership. This is your own property that you can decorate, paint, take out walls, do whatever you want (within reason and housing codes) simply because it's yours. This pride of ownership also gives you a feeling of security and a sense of stability as a person or family.
You never have to wonder if your landlord is going to announce they're selling the home and suddenly you have to move, you never have to worry that someone complains about your crying children or barking dog and you get thrown out. This is your castle and you own it. You have achieved what many refer to as "The American Dream"... owning your own home.
Tax Deductions For Mortgage Interest - As long as the balance of the mortgage is less than the price of your home, the interest fees you pay are completely deductible on your federal tax returns. The best part of this is that the biggest amount of your mortgage payments are the interest so a majority of the money you are paying out can be used as a deduction to reduce your income at the end of the year.
Orignal From: Why Should I Buy a Home?
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