The Top Benefits of Owning a Home

Owning a home can be rewarding in so many ways – both financially and personally. There’s no doubt that it comes with a few headaches, but for many people, the perks make it all worthwhile.

What kind of perks are we talking about? There are a number of advantages to being a homeowner. Some of them may come as a surprise to many first-time buyers.

The perks can be broken down into tangible and intangible benefits. Tangible are those that can be tracked and measured in monetary terms. Intangible benefits can’t be measured from a financial perspective, but have a positive impact on your life. Let’s take a look.

Tangible Benefits of Owning a Home

Fixed Cost

Ever been caught off guard by a rent hike? Landlords reserve the right to increase the price of your rental at the end of your lease term. Sometimes the hike comes as an unpleasant surprise. By purchasing a home with a fixed mortgage, you can count on more predictable costs related to your housing expenses. Although some aspects related to your homeownership will fluctuate or increase to keep up with inflation (think property taxes), your monthly mortgage payment will remain constant.

Tax Advantages

As a new homeowner, you can also take advantage of a few home-related tax breaks. If you’ve taken out a mortgage, your biggest break will be reflected in your monthly payment. Most, if not all of the interest you pay towards your loan, is a tax write off. Additionally, you may be able to get a tax break if you paid points, i.e. fees to the lender at closing to reduce your interest rate.

Capital Gains

Speaking of tax breaks, you stand to be sheltered from some serious tax payments when you decide to sell your home. A capital gain occurs when you sell something for more than you spent to acquire it. For example, say you purchased a home for $200,000 and sold it eight years later for $300,000. After closing costs and real estate agent fees you make a profit of $75,000. If the home was your primary residence, you are not required to pay taxes on the profit. In most cases, if you occupy the home for two of the last five years before you sell, you can enjoy an exemption on the first $250,0000 you make when you sell and $500,000 if you are married.


Many people refer to a home as the ultimate nest egg. Since housing values tend to appreciate over time, the longer you own a property, the more it should be worth. In many cases, a house (particularly the land it sits on) will increase in value over time if you’re living in an area that is growing economically. In general, most parts of the country see returns from housing that is slightly above inflation, with some areas increasing more rapidly than others.


By consistently paying down your mortgage, you have the opportunity to borrow money on the equity that you’ve built up. A home equity line of credit provides the ultimate rainy day fund, allowing you to finance a large project or undertaking.

Intangible Benefits of Owning a Home


When buyers leave the closing table with the keys to their new home, they feel a huge sense of accomplishment. Saving up for a house and taking the steps to become a homeowner is no small feat. There is something to be said for hitting the milestone. Having pride in ownership is a psychological benefit of owning rather than renting.


Having the ability to customize the place where you live is a huge plus. As a renter, you’d be hard-pressed to find a landlord who allows you to paint your place, never mind tear down walls and do some layout reconfigurations. Unless you purchase a home that’s in a highly regulated association, you’ll have a lot of autonomy to make the space your own. So go ahead, customize until the cows come home!


It may seem obvious, but it’s worth mentioning that your landlord can boot you out of your rental whenever your lease runs up. There’s always a chance that you could be forced to relocate if your landlord wants to renovate, sell, or move into the space. When you own your own property, you can rest easy knowing that you’re in better control of keeping the roof over your head.


As a homeowner, you may find that you feel more invested in the community where you’ve chosen to put down significant roots. After all, as a homeowner, you are paying taxes toward your community and can have a voice in how the money is being spent. Communities rely on residents getting involved and helping to drive local initiatives.

Are You Sold?

There are some pretty compelling reasons to buy a property and to be a homeowner – but, it’s not for everyone and timing isn’t always right. You probably shouldn’t justify buying solely to get a tax break. But, if you’re on the fence, perhaps some of these lesser-known perks may sway your decision.

How much home can you afford?

If you have an idea of a monthly amount you can afford for a house payment, a simple place to start is with our mortgage calculator. Here you can enter numbers to give you an idea of the amount of home you can purchase. Of course, this isn’t meant to replace a mortgage officer, although if you’re still on the fence, it’ll give you a direction to start looking in.

Curious about getting started

Want to know more about how the process works on buying a home? Check out our Home Buying Guide where you’ll learn the benefits of buying with Carl VanderLaan.

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