In most regions in the U.S., renting is far more expensive than buying a house, even after you factor in upkeep and other annual costs. Plus, owning a home is also a smart long-term investment that’s much less volatile than the stock market. In reality, continuing to rent year after year can set you back more than $70,000 annually. Here are four ways you can grow your wealth each year by choosing to own rather than rent.

Real Estate Values Grow Quickly

One of the most powerful tools that comes with owning real estate is how quickly property values increase. The annual growth rate varies from region to region, but in some areas you’ll find increases as much as 10% each year, on average. With a $500,000 apartment, for example, you could miss out on $50,000 in home equity annually. The average length of home ownership is 13 years, so over that period of time, you could potentially gain up to $650,000 in equity. When you go to sell, you could cash in that amount, plus however much you’ve paid down your original mortgage.

That’s a lot of money to leave on the table in favor of monthly rent payments that don’t help you build your net worth. Even if you can’t afford your dream home today, you’ll get a lot closer to it by purchasing a home that you can afford and cashing in when the time is right. You could even rent out that first piece of real estate to bolster your savings, then sell it for a profit when you’re ready to buy that perfect place to call home.

Another option is to buy a multi-unit property, like a duplex or small apartment building with just a couple of units. You can live in one of the apartments and have the other rentals pay for the mortgage, your rent, and potentially some passive income to line your pockets as well. Both of these options are smart ways to gain exposure to the real estate market and begin building a portfolio that helps you achieve your own home ownership dreams.

Avoid Rent Hikes

Housing laws on rent hikes vary depending on where you live. But across the U.S., the average annual increase is between 3% and 5% of your current monthly payment. Say you spend $2,000 a month on rent. You could end up paying as much as $1,200 more the next year in this common scenario. That extra cost continues to compound year after year. And if you move after a few years, the rent prices for comparable places will likely be much higher. There typically aren’t caps on how much a landlord can increase rents between tenants.

Most homeowners opt for a fixed rate mortgage, which means your interest rate never changes so your principal and interest payments stay exactly the same for the entire loan. Instead of wasting more money on higher rent each year, you could instead invest that extra $100 per month.

In fact, MarketWatch estimates based on historical data that investing $100 a month for 30 years could result in an account worth nearly $700,000 (with just $36,000 in total contributions). Pair that with your home equity and you can see how ditching your rental can change your financial outlook in a major way.

Increase Your Tax Deductions

Home ownership comes with another financial perk you won’t receive when renting: a tax deduction on your mortgage interest. The savings apply to the first $750,000 of your mortgage balance as long as you itemize your deductions. So if you bought that $500,000 apartment, you would likely spend close to $20,000 on your interest payment for the first year (that amount goes down each year). Itemizing your interest as a deduction could easily save you a lot on your tax bill and potentially even drop you into a lower tax bracket if you’re close to the edge.

The deduction actually applies to several types of properties, including a house, condo, co-op, mobile home, boat, or RV. You can also use it for a second home, even if you don’t spend much time there.

Access Low-Cost Financing Options with Your Equity

When you rent an apartment, you earn no equity in the place in which you live. If you ever need to borrow money for something else, like a major life event, you’ll need to rely on high-interest financing products like credit cards and personal loans.

But when you own a home, you can tap into your equity for financing products that come with some of the lowest rates available. Three common options include a home equity loan, a home equity line of credit (HELOC), and a cash out refinance. All of them provide you with a sum of money that can be used without restrictions, although your home will be used as collateral.

Some of the most common uses include debt consolidation, home improvements, and tuition.

Interest rates on these home equity products are some of the lowest among other financing options, saving you money and giving you a greater ability to build your wealth.

Bottom Line

Buying a house doesn’t have to be hard — or expensive. With the right team behind you, you’ll easily navigate your way through each step of the process and finally be done with renting.

Using an online tool like Hyponia makes buying a home simple as their software is geared towards simplifying the process, giving control to the buyer and removing inefficiencies . It also offers a convenient way to find the right real estate experts in your area at a deep discount. The network is full of vetted professionals who are ready to bid for your business, saving you both time and money.

Sign up for Hyponia today. It’s completely free!