Homeownership has proven itself to be a wise long-term investment. Several reasons for being a wise investment include:
- Paying rent pays your landlord's mortgage. Every dollar you spend toward principle on your mortgage, that builds your equity and your wealth.
- Income taxes favor those who own a home. Additional deductions such as mortgage interest, property taxes, and some closing costs reduce the amount of money you pay in income taxes.
- When you finally do go to sell, your equity (original mortgage amount, minus principal paid) belongs to you, and is often not subject to income taxes.