7 Reasons to Own Your Own Home
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on
your mortgage, property taxes you pay, as well as some of the costs
involved in buying your home.
2. Gains. Over last five years (1998-2002) national home prices have
increased at an average of 5.4 percent annually. And while there’s no
guarantee of appreciation, a 2001 study by the National Association of
REALTORS® found that the typical homeowner has approximately $50,000 of
unrealized gain in a home.
3. Equity. Money paid for rent is money that you’ll never see again, but
mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan.
And when you sell, you can generally take up to $250,000 ($500,000 for a
married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your mortgage payments don’t go up over
the years so your housing costs may actually decline as you own the home
longer. However, keep in mind that property taxes and insurance costs
will rise.
6. Freedom. The home is yours. You can decorate any way you want and be
able to benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you
a chance to participate in community activities, lets you and your
family establish lasting friendships, and offers your children the
benefit of educational continuity.
To calculate whether renting or buying is the best financial option for
you, use this
online calculator courtesy of Ginnie Mae.
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