7 Reasons to Own your
Own Home
The Benefits of Homeownership
1. Tax Breaks
The U.S. Tax Code lets you deduct the interest you pay on your
mortgage, property taxes you pay, and some of the costs involved
in buying your home.
2. Gains
Between 1998 and 2002, national home prices 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 a 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 my Rent Vs. Buy
calculator
Reprinted from REALTOR® Magazine Online by permission of
the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2005. All rights
reserved. www.REALTOR.org/realtormag
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