Net worth: Homeowner's vs. Renter's

Benefits of Home Ownership

From a young age, seeing inflation impact home prices that my grandparents purchased and then next my parents, I always knew it was an important piece of finding financial peace.

There are so many benefits of home ownership.  
To name just a few benefits of being a homeowner:

1. Tax benefits
   Home owners can deduct property taxes and mortgage interest.  
2. No rent increases
   For me this would be scary, worrying about if your rent will increase or if the landlord will even renew the lease when the time comes.  Home owners will see annual taxes change and if there is an HOA in place that could increase, but shouldn't be as dramatic as the possible rental changes could be. Check out this article that shows Phoenix, AZ rents increasing by 20% and one example where a mom's rent increased by $700.
   
   
3. Pay your own mortgage, not your landlords
4. Building Equity
   A combination of increasing values because of inflation as well as paying down that mortgage every month.  Check out this video I created on paying off the mortgage early and saving money in interest while doing it.
5. Freedom of creativity with design choices
   Paint any color you want and hang all the pictures! And even beyond that, if you own your home you can make big design changes over the years and are perfectly suited to you.  New kitchen counters?  Great!  It's yours, you can do what you like.
6. Higher Net Worth
   At the end of the day for me, I choose to be a homeowner for the financial reasons.  
   Recently published by CNBC was an article that detailed the difference in net worth: homeowners vs. renters and it's really eye opening.  Homeowners in the US. had a net worth of $255,000 while renters on average just $6,300!  Talk about eye opening.
   
   
7. Increased credit score
   Taking out a mortgage and making timely payments may increase your credit score.
8. Hedging against inflation
   
   
9. Privacy
   If you rent a home, and landlord can come in to your space as needed.  If you own your home there is no need for that.  Along with that a single family home will keep you from having shared walls which could be noisy and if not in a rental community you may have less neighbors coming and going each year.
   
   
10. Pride of Ownership
    There is a sense of accomplishment that comes along with owning a home.  And it's really easier than many people think it is. 
    
    

Comment below with any benefits of home ownership that you've enjoyed!