If you are thinking about buying a house, consider the following advantages:
• A house is a form of forced savings (you make payments on an asset that may grow in value--many families would never accumulate assets otherwise).
• Homeowners often have a sense of pride and status in home and community.
• A homeowner may have a better credit rating (equity in a home improves the credit status of the family and can be used as collateral for an emergency loan).
• Mortgage payments contribute to an investment, particularly if the property is located where it increases in value over a period of years.
• Monthly payments remain relatively constant for many years (fixed loan), thus housing costs are stabilized because present and future costs can be estimated and planned.
• Interest on mortgage monies and taxes are legitimate income tax deductions.
• The house may increase in value, resulting in a significant gain in net worth.
• Ownership may contribute to security, especially in retirement years when income normally decreases.
• A homeowner can borrow against his/her equity, as the value of the house increases against what is owed on it.
• More space may be available for family members and their activities.
• A homeowner has freedom to make improvements and changes to the house and surroundings as desired.
• Homeowners generally are concerned about community affairs and how they may affect their property, which results in a greater sense of community. |
