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, 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.
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