3 Reasons I Prefer Owning My Home to Renting It

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Buying a house is a huge financial responsibility. But despite the fact that purchasing meant committing to a big mortgage payment every month for 30 years, I bought my own home as soon as I was financially able to do so. I have been a homeowner ever since.

There are a few key reasons why I absolutely prefer being an owner to a renter. Check out why I love owning my own house to see if any of my reasons could apply to you and convince you it's better to buy.

1. I'm building equity with every payment

One of the single biggest reasons that I prefer owning my house to renting is because every payment I make grows my net worth -- and that wouldn't be the case if I rented a property.

See, when I pay my mortgage lender every month, my principal balance goes down. I build home equity, which is the percentage of the home I own beyond the bank's interest in it. And I will eventually own a valuable asset free and clear, which should ideally have gone up in value.

Now, it's true you can become rich without owning a house. But it can be harder because you'll need to be 100% sure you're investing regularly to grow your net worth. While you still have to do that as a homeowner, paying into your house is a type of forced savings that essentially requires you to acquire an asset worth hundreds of thousands or even millions of dollars.

The fact that homeownership means you end up with a house in the end is one big reason why homeowners have 40 times the net worth of renters. (The other reason is that you have to be financially stable to buy, and that financial stability contributes to your higher net worth, too.)

2. My mortgage interest is tax deductible

There's another big benefit to home ownership that I love: The government is subsidizing my housing costs. That's because I itemize on my taxes, so I'm eligible to deduct mortgage interest on loans up to $750,000.

Deductible interest means that my taxable income is reduced by the amount of interest paid. Say, for example, I was in the 22% tax bracket. For each $1,000 in mortgage interest I pay over the course of the year, I could save up to $220 because I wouldn't pay taxes on that $1,000. The $1,000 in interest costs would only cost me $780.

You do have to itemize to deduct mortgage interest, and many people don't because they claim the standard deduction. Still, if you have a lot of other deductible expenses and itemizing could end up making sense for you, this is a huge benefit of owning your own house. So consider this factor when deciding if buying a home is right for you.

3. I get to customize my house

The last benefit isn't a financial one, but a personal one. Because I own my house, I get to make it my own. I can paint it whatever color I want, remodel to my needs, and make it my own. If I was a renter, it wouldn't make sense to do that. Since I work from home and spend a lot of time there, this is a huge benefit to me.

If you're fussy about your space, being able to design it exactly the way you want it is a great reason to buy -- as long as you're in a financial position to afford the home and the changes you want to make.

Owning a home isn't for everyone. But if you want forced savings, a tax break, and the ability to deep-dive into interior design, it could be a great choice for you. Just don't buy before you're ready to stay put for at least a few years, have a down payment saved, and can keep your total costs of homeownership to 30% of your budget or less. That way, you'll make a smart financial choice, as well as the right personal decision for your lifestyle.

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