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 |
