What are the benefits and costs associated with home ownership? Purchasing a home is an investment. It should be made with the same knowledge, objectivity, and deliberation that you would apply to the purchase of stocks, bonds, or life insurance policies. Knowledge of the general costs and benefits associated with owning a home is necessary to make an informed investment decision. What are the benefits associated with homeownership? Owning a home offers physical and psychological as well as financial benefits. Among the physical benefits are shelter and security, while the psychological benefits include: A feeling of impermanence and a lack of control over one's environment Peace of mind and pride of ownership Homes also provide financial benefits, including serving as a hedge against inflation and a shelter from taxes. The hedge against inflation occurs, because the price of houses generally increase at a rate equal to or than the rate of inflation, while the tax shelter results from the of the: O Insurance premiums paid to protect the home and your contents O Interest paid on the mortgage Down payment paid to purchase the home O Home maintenance and repair expenses i A feeling of impermanence and a lack of control over one's environment Peace of mind and pride of ownership Homes also provide financial benefits, including serving as a hedge against inflation and a shelter from taxes. The because the price of houses generally increase at a rate equal to or than the rate of inflation, while of the: Insurance premiums paid to protect the home and your co Interest paid on the mortgage Down payment paid to purchase the home Home maintenance and repair expenses greater less psychological benefits include: O A feeling of impermanence and a lack of control over one's environment Peace of mind and pride of ownership Homes also provide financial benefits, including serving as a hedge against inflation and a shelter from taxes. The hedge again- because the price of houses generally increase at a rate equal to or than the rate of inflation, while the tax shelte of the: taxability tax deductibility aid on the mortgage premiums paid to protect the home and your contents Down payment paid to purchase the home