When people buy a home, they feel happy and excited about it. The thought of it fuels their minds and motivates them to stick to their budget plan. Some who are renting a place wonder what the benefits of owning a home are. However, when people make plans about ownership, they ponder on different things such as how much will they pay monthly or how much taxes will be.  So, what are the benefits of home ownership?

Homeownership offers different benefits. From feeling secure about their future to providing their family a safe place to live. Here are the other benefits of owning a home that you need to know.

#1 Tax

By purchasing your own home, you enjoy the privilege of reducing mortgage interest and property taxes from annual income taxes. However, you can reduce mortgage interest only up to $1 million.

For new homeowners, more benefits come your way due to the money paid on the mortgage. A large portion of it goes to interest. At work, if you’re one of the top earners, this gives you an advantage for a tax privilege. But how?


When a person belongs in the top tax bracket, which consists of around 40%, every penny paid to mortgage interest saves you about 40 cents in income taxes. Aside from saving on mortgage interest, you also save on state income taxes. Hence, the government subsidizes your purchase.

#2 You can always modify the house according to your liking

Another great thing about owning your own house is that you can modify things according to how you like it. Renting a flat does give the same benefit as owning your own house. Although some who rent try to make it their own by doing little fixes. However, renters cannot change the general structure of the flat. They need to ask permission from the landlord or landlady before doing so.

On the other hand, when you own your own place, you’re at liberty to choose which color goes up on the wall. Even changing the overall structure, from the walls to the beams, and even roofing. Modifying the house according to your preferences is a big benefit to homeowners.

#3 Buying a house requires a contract

Before moving from one house to another, buying a house requires a contract and other documents to sign. Some of these documents are fixed and cannot be negotiated. However, that’s false.

As future homeowners, don’t sign a document that you don’t understand. Ask your realtor to explain what the document says before entering into an agreement.

#4 Gaining an investment

Some compare buying a house to buying a car. However, both of these differ in so many ways. First, cars depreciate as years go by and owners find it hard to sell them. On the contrary, a house increases its value as the years go by. Moreover, its value appreciates even more if located in a prime area.

As homeowners pay their mortgage every month, the debt decreases. But the overall value of the property increases. Moreover, the more improvements and pieces of furniture the house contains, the higher the resale value.

#5 Acquire equity

Homeownership involves two (2) elements called investment and equity which both relate to each other. Whenever the homeowner pays their monthly mortgage, a portion of it goes to the interest and the rest goes to the principal balance.

Equity means the part of the principal balance paid already. In other words, it means the part of the house that you own or bought. When homeowners pay the principal, it may also mean depositing money in the bank. Hence, homeowners may think of investing in another property or reinvesting in the home they first bought.

#6 Renting gives a small chance of ROI

While renting provides a more affordable option at present, it doesn’t give any return in the long run. Some don’t realize that the amount they pay for rent may be the same as a monthly mortgage.

When people rent long-term, they often have done some home maintenance or modifications to make it more comfortable. However, some landlords dislike this, especially if they weren’t informed about the modification. Also, some may require that you bring it to its former state.

Owning a house means any modification you make may be used for resale. Houses appreciate in the long run and with these modifications, realtors increase the value.

In addition to that, mortgage payments give more benefits than rent. It provides a return of investment (ROI) through security and tax benefits.

#7 Increase stability

Homeowners don’t need to worry about where do they live the following month. Owning a home provides security and stability in the future. Though mortgage payments seem hefty, you need to prioritize paying a mortgage and staying afloat.

This provides homeowners a long-term plan that ensures a significant decrease in their expenses. It also benefits when homeowners plan their retirement. They don’t need to worry about where to reside as they already have their own.

#8 Gives you a permanent address

Renting a place makes people move from one place to another. When they get transferred to another place due to work, it becomes inconvenient as they factor in travel time. Moving from one neighborhood to another gives emotional and financial challenges. People adjust to the neighborhood and how people in the building live.

Owning a home gives stability and security. You worry less about where to live next or what adds to the expenses on the next payout.

#9 Fixed monthly payments

Rent presents some people with an affordable solution to their immediate problem. However, with rent, landlords easily raise the amount especially if the contract comes closer to expiration. On the other hand, when people own their home, they know the monthly mortgage even up to 30 years. This way, they budget their finances better and worry less about the increase in mortgage.

Homeowners can create a budget knowing that their principal and interest payments won’t rise, ever.

-Brian Davis, co-founder and real estate blogger at SparkRental.com

Also, remember that the housing budget goes straight to homeownership, not the landlord’s.

#10 Appreciation

When buying your own home, you gain an asset. In most cases, buying a house or a property gives more benefit than other assets. It appreciates over time and even increases its value more when located in a prime area or neighborhood.

Currently, a house bought at around $200,000 may cost around $400,000 over time. This depends on the improvements done on the property and the location as well. Most financial advisors say that owning a home establishes security for future generations.

Calcite Credit Union shares these benefits of owning a home in order to educate aspiring homeowners. When you start thinking about the future, it begins with securing a more permanent place of residence. Don’t hesitate to contact us for inquiries!