1. Cheaper to Buy

Although buying a home can be expensive initially, and renting is a cheaper option. In the long run, this isn’t the case. Homeownership according to Trulia, is 38% cheaper on average than renting. They attribute the drastic difference in costs to the rising cost of rent and the low fixed-rate mortgage rate. The best way to play your cards right is by paying more for your down payment so that you can save more money in the future.

2. Building Equity

One of the great benefits of homeownership is building equity, which is your share of your home. Basically, it’s the difference between the market value of your home and the amount that you still owe. But if your home appreciates in value, your equity increases even though the amount you own does not. Imagine if you bought your home now, how much equity you could have? Instead of your money disappearing into the landlord’s pocket each month, you’ll be paying into something that can become more valuable over time.

3. Increasing your net worth

Homeownership historically has always been an effective way to build one’s net worth. You can calculate your net worth by subtracting your financial liabilities from your assets, which include investments, savings, retirement funds, home equity, and other valuables. Finance professor Sebastien Betermier estimates that housing accounts for 67% of the average American’s total wealth (an unwise money move in his opinion, but a norm nonetheless). Unless you’re consistently saving and investing your money through other means, a house can serve as a way to store your wealth and build your net worth.

4. It’s a stable investment

Researchers find that not only do homeowners gain a sense of stability when they settle into their first home, but they also contribute to neighborhood stability. A study compiled by researchers with the National Association of Realtors shows that homeowners move less frequently than renters and stay in their homes for longer periods of time. Researchers William M. Rohe and Leslie S. Stewart theorize that homeowners are more invested in their properties, and their neighborhood, which makes for a more stable and close-knit community. For those looking for stability and a neighborly ambiance, homeownership might offer them what they’re looking for.