When you own your own home and make mortgage payments, the principal portion of the mortgage payment is applied to the unpaid balance of your loan. This reduces the debt owed and increases your equity in your home. Now your home is also your investment. The interest portion of your mortgage payment qualifies you for a tax deduction, this results in money in your pocket. Homeownership gives you the great feeling of being in control of your special space.
A tenant is subject to the management abilities of the landlord. Rents can increase, properties can fall into disrepair, the interests of your landlord may not always be your best interests.
Posted in: Homeownership