One of the first things you should do when your income is allowing savings to accumulate in your bank account is buy a house. If you are paying rent, you are not taking full advantage of your income. 

The following are just five of the many reasons why you should consider buying a home as a first step in properly managing your wealth:

Diversifying your assets

When you own a home, you acquire a real estate asset. A piece of real estate can increase dramatically in value through the years, and this makes a home a bit like an investment you can live in. 

Owning a home can also provide you with an additional opportunity to make money because you could rent out one or several rooms in the home to have rent income each month.

Cutting out rent payments and putting your mortgage payments toward ownership

When you're paying rent, you're paying your landlord's mortgage for him or her. When you own a home, you're paying your own mortgage so that you'll own a valuable asset once your mortgage loan is paid off.

You have to have a place to live. Why not live in a place that's increasing your personal wealth and is a long term investment rather than just a month's living space?

Protecting you against the pitfalls of inflation

If you're renting a home or apartment over a long period of time, your rent payments are probably going to go up gradually with inflation. On the other hand, what you own when you buy a home will generally increase in value when inflation occurs.

Home ownership therefore prevents you from having to pay more for your place of residence simply because inflation has occurred.

Taking advantage of tax deductibles

If you're making mortgage payments, your tax liability will most likely be lower the next time you file your tax return. This is because the government allows payments on interest from a mortgage loan to be deducted from a taxpayer's taxable income. This can result in huge tax savings over the entire life of a mortgage loan.

Forcing you to put money into a form of savings over time

Making payments on a mortgage loan is kind of like putting money in savings because you gradually acquire equity in your home with each payment you make.

Even if you decide to sell the house before you've completely paid off your mortgage, you'll get any money leftover after you pay the mortgage balance with the sale of the home. Therefore, a mortgage loan forces you to save and increase your assets each month.

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