Reasons to Own a Home
7 Reasons to Own Your Home
Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage,
your property taxes, as well as some of the costs involved in buying your home.
Appreciation. Real estate has long-term, stable growth in value. While year-to-year
fluctuations are normal, median existing-home sale prices have increased on average 6.5%
each year from 1972 through 2005, and increased 88.5% over the last 10 years, according
to the National Association of REALTORS®. In addition, the number of U.S. households
is expected to rise 15% over the next decade, creating continued high demand for housing.
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 fixed-mortgage payments don’t rise over the years so
your housing costs may actually decline as you own the home. However, keep in mind
that property taxes and insurance costs will increase.
Freedom. The home is yours. You can decorate any way you want and 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.
Resource: National Association of REALTORS®