This is part three of the benefits of home ownership series.
Forced Savings
Many people are not very good at saving money; fortunately, a house is an instant savings account. There are two different ways you grow your savings:
- Each month as you pay your mortgage a percentage goes towards your principal. The amount that accumulates in your principal is called your equity. During the early years of your mortgage, it will seem like there is not much equity but it is better than nothing when compared to renting. It will continue to grow the longer you own your home.
- Your home will appreciate. You can also make home improvements to your home that will also raise the value of your home. Many studies have shown, throughout history that the best financial investment for most Americans is their own home.
More Space
Inside or outside, you will generally have a lot more room if you own your home. You will often have your own laundry space, parking space, bigger rooms, bigger yard, and a lot more storage space.
Pride
Owning your home brings a sense of pride as well as reflects responsibility. It feels great to know that you are working towards something that will be 100% yours someday.
1 response so far ↓
1 Carin // Nov 22, 2007 at 1:17 pm
First time home buyers may not be aware that they can use term life insurance instead of the mortgage insurance offered by the lender. A term life insurance in an amount sufficient to cover your mortgage can be alot cheaper, as well as allow you to name your own beneficiary. Remember, the mortgage insurance offered by the lender is to protect them, term life insurance protects you.
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