Recent events in the housing market have many people questioning if home ownership is still something to aim for. Even as the nation continues to recover from the economic downturn, the benefits of purchasing a home of your own remain as strong as ever.

1. Good Investment

Renters receive no return on what they pay out in monthly rent – it’s virtually money out the window. Even though renters are paying for living space, committing to a home purchase and monthly mortgage creates much more potential for a return on the investment. As you pay your mortgage each month, you are building equity and increasing your net worth. Equity is the value of the property that you own or what you have paid off each month. A home’s equity is also combined with the amount of appreciation, or amount your home has increased in value over time.

Building up your home’s equity also opens the door to mortgage refinancing and home equity loans.

Homeowners then have more financial flexibility towards financing large expenses such as remodeling, college tuition or debt consolidation. Of course it’s always possible that the value of your property will go down and not up, as many homeowners throughout the country have experienced over the past few years. Still, if you look at the value of real estate over the long term it has gone up over time. Like any investment buying a home involves risk – research the real estate market in your area to help you make a decision that feels right for you.

2. Tax Benefits

As you diligently pay your monthly mortgage, your tax advantage increases over the years. When you are paying for your own home you have the ability make a deduction on your federal income tax return for what you have paid towards the interest on the mortgage and property taxes. Some states also make allowances for additional deductions. It pays to check with your accountant or tax advisor in regard to your allowable state deductions.

3. Financial Control

Paying for a home of your own prevents you from being subjected to surprise rent increases, especially if you have chosen a fixed rate mortgage. It also removes the stress of lease renewal. For many, becoming a homeowner is a solution for beating the high cost of retirement. It is entirely possible to pay off your home and live out your retirement years rent-free! Of course, as long as you own the home you will be responsible for the property taxes and insurance costs.

4. Freedom

Let’s face it, renting is fine for many, however, there usually comes a time when you want to call the shots and be in control of your personal space. Most rental situations dictate everything from paint colors to pets to window treatments. Forget about remodeling or making home improvements, and why would you want to invest time and money in to a place that is not even yours? As a homeowner you can also resolve issues on your own, such as home repair and maintenance. Owning a home of your own allows for personal expression and control.

5. Pride of Ownership

There is a great deal of satisfaction that comes from buying a house. It is an experience that provides independence and privacy. Because it is typically the largest single investment that most of us will ever make, it remains an achievement to be proud of.