Choosing to become a homeowner is generally one of the biggest decisions of your life. It’s a financial and emotional decision that must be made based on your individual circumstances. If paying rent has you leaning toward the security of owning your home, here are a few reasons why buying a home can make financial sense over the long run.  

Financial Benefits of Owning a Home

Hedge Against Inflation and Rising Housing Prices. Homeownership provides stability. With a fixed-rate mortgage, your monthly payment can be locked in, which can be especially important as inflation and the cost of housing rises. When interest rates drop, you can refinance to lock in a lower rate.

Pay Your Mortgage (Not Your Landlord’s Mortgage): As you pay your mortgage, its balance is reduced, building equity in the property.

Appreciation. While every market is different, home values have historically appreciated annually. Plus, you enjoy appreciation on the total price of the home, not just the cash you put down.

Tax benefits. Your tax advisor can help determine eligible tax deductions, which generally include mortgage interest and property taxes. 

The net benefits of paying a mortgage often outweigh the monthly rent you’ll pay – and as a homeowner, you’ll have a valuable asset.  

If you’re trying to decide whether to buy a home or continue renting, your Long & Foster real estate agent can help you explore your options.

Alternatively, if you’re planning to sell your home, your agent can help you prepare it to get the most out of your investment.