Last updated: November 08, 2023

Home Ownership

Remarkable benefits of owning a home

Family cooking in their kitchen and appreciating the benefits of owning a home

Owning a home is a dream that many people aspire to achieve. Becoming a homeowner comes with a lot of responsibility, but also a lot of rewards. Beyond the financial investment, owning a house may come with numerous advantages that enhance the quality of one’s life. From stability and security to financial advantages and a sense of personal freedom, the benefits of owning a home may feel truly remarkable. To help you decide if owning a home makes the most sense for you, here are some of the main reasons to pursue homeownership.

Invest in stability and security

Owning a home may offer a safe place for oneself and the family. Unlike renting, homeowners have the freedom to personalize and make changes to the property, creating the feeling of a comfortable and secure living environment.

  • A permanent place to call home: Purchasing a property allows for a permanent home, a sanctuary where individuals and families can create memories and build their lives. Knowing that you have a place to return to at the end of the day or after a long trip may provide a sense of stability and comfort. Unlike rental agreements that can be terminated, homeowners have generally have the freedom to make long-term plans and establish roots in a community.
  • Freedom from rental increases: Renting comes with the risk of frequent rent increases, making it challenging to plan for the future. The stability of homeownership eliminates this uncertainty, as it is possible to secure fixed monthly mortgage payments throughout the duration of the loan term, depending on the type of mortgage you choose. This predictability may allow homeowners to budget and manage their finances more effectively. With a fixed-rate mortgage, you may have greater control over monthly housing expenses and can allocate resources towards other important life goals.
  • Protection against inflation: One of the unique advantages of owning a home is that it may provide a hedge against inflation. As the cost of living increases over time, so does the value of real estate. Historically, real estate has shown appreciation in value, providing homeowners with an asset that may keep pace with inflation or even outpace it. This may provide an path to maintaining financial stability and security in the long run.
  • Shelter and protection: A fundamental aspect of homeownership is the shelter and protection it provides. A home offers a physical and emotional haven from the outside world and may provide a sense of security and stability that is more challenging to replicate in a rental property. Owning a home means having a safe space for oneself and loved ones, creating a feeling of belonging and fostering a sense of well-being. 

Build equity and wealth

One of the most significant benefits of owning a home is the opportunity to build equity and accumulate wealth. As you make mortgage payments over time, you gradually pay off the loan and increase your equity stake in the property. While home prices move in cycles over the short-term, if you stay in your home for a long time, it could increase in value and give you a substantial return on your investment.

Your home as a financial asset

A home may serve as a valuable asset that can be cashed in during times of financial need. Homeowners have the option to borrow against their equity by taking out a loan or line of credit, providing a financial safety net when required. This asset can also be passed down to future generations as part of one’s legacy. Also, beyond the potential appreciation of the property, a certified tax professional may be able to help you find out if you can deduct mortgage interest and property tax from your taxes and provide you with potential savings when filing returns.

How home equity works

The way equity works is that when you subtract the amount you owe on your home loan from the total value of your house, the amount left over is your home equity — the “dollar” value of your home that belongs to you. There are two ways to build equity:

  1. With each monthly payment you make, a portion goes toward reducing the amount you owe on your mortgage, which increases your equity.
  2. As your home's value increases, it creates more equity for you.

In a sense, paying your mortgage is a form of savings since it increases your home equity. When necessary, you may be able to borrow against your home equity to meet a variety of financial needs such as making home improvements, consolidating high-interest debts, or funding other large expenses. A home equity loan or home equity line of credit (HELOC) generally has a lower interest rate compared to personal loans or credit cards, and a tax advisor may be able to help you find cases in which your interest payments could be tax-deductible.

Learn more: Is home equity loan interest tax deductible?

Create the home you want

As a homeowner, you have the freedom and control to make decisions about your property. When renting, landlords can dictate rules and restrictions that must be followed. Homeowners avoid that situation and can personalize their spaces to meet their needs and preferences. From renovations and upgrades to landscaping and decorating, the ability to customize your home may provide a unique sense of ownership and pride.

Purchasing a home is a major milestone in life and an achievement to be proud of. Becoming a homeowner symbolizes hard work, perseverance, and the ability to build a foundation for oneself and one’s family. This pride and satisfaction that come along with owning a home cannot be overstated.

When you own a home, you may have the chance to grow closer to your community and find opportunities for connection and social integration. Living in a neighborhood of your choosing and forming bonds with those who live around you fosters a sense of belonging and community involvement. This can result in lasting friendships for both you and your family.

Closing thoughts: Benefits of homeownership

The stability and security that come with owning a home are invaluable and go far beyond the financial advantages you may have by owning property instead of renting. By establishing a permanent place to call home, you can enjoy independence and control over your living space.

Homeownership offers tremendous freedom to create the living environment that you have always wanted. You can own pets, paint rooms whatever color you like, make changes to the floors and carpeting and do all the things that make a house feel like your home – all without having to get approval from a landlord.

It also provides you with a potential sense of community and a source of pride and achievement. If you have the means and opportunity, owning a home may truly be a life-changing and rewarding experience.

Please note: Discover® Home Loans offers home equity loans and mortgage refinance opportunities, but does not offer purchase mortgages or HELOCs.

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