Best Answer: In today's market where there are hundreds of foreclosures in every community it's easy to be pessimistic about the benefits of home ownership. But here are a few
1. In some cases your payment can be cheaper.
2. Mortgage interest is tax deductible. Thus on a $1000 house payment you might be able to right off $10,000 in interest and depending on your tax bracket get an extra $2000 back at tax time.
3. Your property will on average appreciate at a rate a lot greater than expenses of upkeeping the house. A $100k house appreciates historically 4%/yr (in midwest) Thats $4000 in equity earned to compensate for any expenses of owning the home.
4. You can do what you want to the house! replace the lights, fixtures, paint
it. Plant flowers and watch them grow for years. No one to tell you what to do.
5. If you miss a payment you cant be immediately evicted. Eviction begins immediately. Foreclosure begins after120+ days of late payments and even longer until you are removed from the home. Thus you can have more time to straighten out your finances during tough times.
6 You will pay off a house as long as you dont keep refinancing every year to pay off credit card debt, then this would be a benefit.
7. Even if you never paid down on the house and bank still "owned it". You would still own the equity in the property which can be pretty substantial after 5-10 years.
Source(s): Loan Officer
Scott B · 8 years ago