Benefits
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.
