Even though most people have considered the pros and cons of renting vs. buying, and recognize the value of owning, some people are still not convinced of the benefits that come with homeownership.

Despite any negative viewpoints on buying, owning a home has traditionally been one of the best investments. Because of rising home prices, the opportunity to gain substantial equity within a reasonable period is realistic. Hence, buying a home is like investing in a long-term savings account. If choosing to remain in the home for the entire loan term or selecting a shorter loan term, owners have the option of selling the home, purchasing a smaller residence, and placing the profit from the sale into a savings account or other investments.

Owning a home offers significant tax advantages. This is advantageous for homeowners earning a substantial salary with few write-offs. Aside from losing much of their gross income to taxes, these persons may be required to pay additional taxes at the end of the year. Homeownership allows deduction of mortgage interest, home equity interest, discount points paid, and property taxes. Lowering a homeowner's tax obligation may even result in a refund.

In overpriced housing markets, renting may involve a lesser expense, which is more conducive to some people's finances. The downside is that rent prices tend to continually increase. For example, a renter may begin their lease agreement paying only $650 per month. If the rent increases $50 per year within three years, the same renter could be paying $800 per month. This price excludes extra fees for pets, washer/dryer rental, parking, and the like.

If choosing to buy a home, the monthly expenses can be predicted and budgeted, particularly with fixed rate mortgages.