7
Reasons to Own Your Own Home
- 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.
- 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 REALTORSÒ
found that a typical homeowner has approximately
$50,000 of unrealized gain in a home.
- 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.
- 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.
- 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.
- 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.
- 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
calculator courtesy of Ginnie Mae:
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH |
