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Consumer
Reports for Home Buyers -
Buyers
Services |
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7 Reasons
to Own Your Own Home
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Tax
breaks. The U.S. Tax Code lets you deduct the
interest you pay on your mortgage, property taxes
you pay, as well as some of the costs involved in
buying your home.
-
Gains.
Over last five years (1998-2002) national home
prices have 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 the 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.
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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.
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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.
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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.
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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
online calculator
courtesy of Ginnie Mae.
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Reports for Home Buyers |
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