Wondering if buying a home is a good investment for you? Here are some benefits to homeownership you may want to consider:

1. Equity. Your home equity is the amount of ownership you have in your home, which increases as you make payments. It is calculated by subtracting your mortgage balance from the home’s market value. Your equity actively grows as you make your mortgage payments, and it also grows passively when your home appreciates in value over time. 

Why is this good? When you sell your home, you keep your home equity as cash.

Here's something to think about: Renters do not recoup their housing costs, but instead contribute to their landlord's equity. 

2. Appreciation. Your home is an investment that will typically increase in value, or appreciate, over time. In an example from Zillow:

"If you buy a $300,000 primary residence with a $30,000 down payment (representing 10 percent down) and it appreciated 3 percent per year for three years, you’ve gained $27,818 on top of your $30,000 invested — and if you sold, you’d be exempt from paying any taxes on that money gained."

You can do a quick check here to see how a home's value may have appreciated over time: https://www.fhfa.gov/DataTools/Tools/Pages/HPI-Calculator.aspx

3. Price Stability. When rents rise, mortgage payments stay the same. With a fixed-rate loan, even though property taxes and homeowners insurance may go up, your payments will stay relatively stable. Meanwhile, rent costs are volatile. Each time you renew a lease or need to find a new rental, you could be looking at steep increases. 

4. Tax benefits. Did you know that you if you itemize deductions, you can deduct a portion of your property taxes and mortgage interest from your annual taxes? These savings can be significant and can make owning the same as, or cheaper than, renting.

5. Make it Your Own Style. Not only is personalizing your home fun, rewarding and comforting, but it can increase the value of your property as well. Want a nice chandelier? Marble countertops? Fun backsplash? No need to ask a landlord or work to improve someone else's property. Your home can be designed your way, and those special touches could be what gives your home added value if you decide to sell. And, when you build new, you can choose your selections ahead of time, so there's no need for remodeling. 

These are just a handful of the benefits that homeowners enjoy; however, there are so many other ways families can benefit from homeownership. According to Habitat for Humanity, home ownership can affect aspects of your family's life such as health, education, safety, and financial stability.

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