For a first time home buyer, what are the benefits of purchasing a home instead of renting?
Buying a home has many advantages over renting. For those with a stable financial situation who know they are likely to live in the same place for a number of years, you'll find many benefits to purchasing a home. The money you pay to rent every month will never benefit you again, but the payments you make on a home will help to build equity and represent a gain to your net worth. When you own your home, it is an investment. Over the long term, the worth of a home typically increases, which means your home may make you some money when you decide to sell it later on.
Owning your own home also means privacy and freedom from landlords. As a homeowner, you can customize your home with remodeling, painting, decorating and landscaping decisions without seeking anyone’s permission. There are also no fines or penalties for having pets or new tenants moving in or out like there is when you are renting a home.
Also, there are a ton of great tax benefits! At the end of the year you can write off interest paid on your mortgage, property taxes and home owner’s insurance.
All and all, owning your home gives your privacy, freedom to customize, builds equity, and has some significant tax write-off benefits.