Interest rates for home mortgages are still at historic lows. Even everyone expect the Federal Reserve to start hiking interest rates, current rates are an incentive for those who are looking to buy a home. Here are other advantages of buying a home.
- Equity: As the value of home increases over time your mortgage debt start to shrink creating or building equity in your home. This is something that you will not see with renting. Many believe home ownership is one of the iconic investments. But be aware that home prices could plunge and instead of building equity you could become an underwater mortgage owner. This is why many home owners are getting into the home buying market as a long term investor.
- Unlike a rental, you will be the landlord. It comes with added responsibilities. In addition to utility payments, now you will have to budget for property taxes, insurance, repair and maintenance and host of other things. But these expenses may also come with added tax incentives such as tax deduction for mortgage interest payments and property taxes.
- Owning a home can provide more stability than renting.
- Paying your mortgage on time each month will help you to build credit.