There are, of course, many benefits to home ownership. These benefits are the reason why people buy a house. But over the weekend, I read an article which stated the benefits of renting, and I realized that the true benefits of home ownership may need to be explained. So, I’m going to be posting a series on the many benefits of buying a house, and I hope it might clear up any confusion out there about why buying a house is a great decision.

One of the greatest benefits of home ownership is building equity. Each month when you make a payment, you are effectively paying yourself, at least in part. As the years pass and the principal balance of your loan goes down, your equity – the portion of the home you actually own – increases. Once the mortgage is completely paid off, the house is yours, and should you decide to sell it, all of the proceeds go to you.

This system of building equity greatly differs from the system of renting, which leaves you with nothing in the end. Every dollar you spend on rent goes to someone else; you will never see any of that come back to you. In the event of a financial hardship, you will not have the ability to borrow against your equity, and when you are ready to retire, you won’t have a house to help you afford a comfortable lifestyle.

For more information on how building equity can help you, or if you have any questions about buying a house, please contact me. And if you have anything to add about the benefit of building equity, please leave a comment.