Are you wondering if homeownership will benefit you? According to an article from The Wall Street Journal, the pros of owning a home may outweigh the cons for many people.
Regardless of the real estate market's conditions, homeownership is a good thing. It's a way to force yourself to save money. Paying off the principal of a home loan is like paying yourself by building equity. "As a forced monthly saving, it's a good discipline," the paper states.
There are tax savings to homeownership. From deducting the mortgage interest from your income taxes to deducting your real estate taxes, many people find that these tax savings mean owning costs less than renting.
There is something to be said about a home being yours and having the freedom to do with it what you want. You don't need permission from the landlord to paint. You can remodel the kitchen or the bathroom and know that any return on investment is going into your pocketbook.
Another housing figure that's expected to change in the coming months and years are mortgage interest rates. Home loan rates are low this year, but many experts predict they'll rise soon. A slight increase in mortgage rates can have a big effect on the overall cost of a home. In fact, when rates increase by 1 percent over their current level, the price of a home would have to drop nearly 11 percent to match today's payment.