Buying a home is still part of the American dream according to 90% of the population despite past unsavory loans and down economic markets. What makes home ownership still an attractive proposition besides its symbol for success?

1. Building Equity.

Low housing prices do not last forever. As a homeowner, one builds equity in their home as an investment that a renter can never do. A renter actually provides a return on their landlord’s investment. Even in states where the housing crash hit hard, the homes will regain their value. As homeowners pay down their mortgage and their home value increases over time, a solid investment has been made as opposed to nothing at all from renting.

2. Creating Stability.

When someone purchases a home, they are likely to live in the same location for longer than a typical renter. A renter will live in the residence for the length of the rental agreement making the area more transient from more people moving in and out of the residence. In neighborhoods that have a high rate of home ownership, it is likely that neighbors will create relationships causing them to live in their home much longer. Selling a home is a lot more work than ending a lease so the homeowner is less apt to move as often as a renter.

3. Customizing Your Space.

One of the greatest facets of home ownership is you are able to do as many home improvements as you like and you may decorate the home however you please. A renter has no incentive to do any home improvements to the rental property as they have nothing to gain from it, so it is the landlord’s responsibility to handle any issues that arise. Homes of this nature are never maintained as well as a home that is tended by a homeowner.

4. Increasing Deductions.

The mortgage interest deduction is one of the most valuable tax tools available to homeowners.  In addition to most or all of their mortgage interest, homeowners can also currently deduct property taxes and points paid on their home loan.  In most cases, first and second mortgages and home equity loan interest is also deductible.  However, a tax advisor will be able to provide definitive answers on individual situations.

Owning a home is still a goal that most Americans would like to reach. So if you have the savings and credit rating to buy a new home and are considering it, give it a shot. It will be a positive investment in the long run.