Why Buy a House? 3 Wealth-Building Reasons

Many people ask themselves at some point, "Why buy a house?" While homeownership is not for everyone, there are definitely some benefits that you can realize by purchasing a home. Here are a few ways that buying a home can help you build wealth.

1. Equity

One of the biggest benefits of buying a house is that you will accumulate equity. When you purchase a home, you will pay down the balance and the home will increase in value. The difference between the amount that you owe and the value of the house will be equity that you can utilize in the future.

2. Tax Benefits

When you purchase a home, you will also be able to realize tax benefits. You get to deduct the amount of interest that you pay from your taxable income at the end of the year. When you first buy a house, this will be the majority of your mortgage payment.

3. Benefits Compared to Renting

When you rent a property, you are essentially throwing money away. You will never have access to any of that money again. When you buy, you will eventually get part of that money back in the form of equity when you sell the property or refinance the mortgage.

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