Benefits of Home
Ownership
-
The rate of return when buying a home
is higher than almost any other investment you can make. No one can
make any guarantees, but as a general rule of thumb, your home will
appreciate an average of about 5% per year. This can vary from time to
time, region to region, state to state.
-
Interest on your mortgage and your
property taxes are tax deductible, as are in most cases, the points and
origination fees. When you sell, at the time of this writing, you can
generally take up to $250,000 as gain without owing federal income tax
on this amount. ($500,000 per couple)
-
The money you pay towards rent is money
you’ll never see again. Part of each monthly mortgage payment helps
build equity – the shorter the term of your loan, the faster you build
equity.
-
The equity you build in your home is a
ready made savings plan.
-
You are the one who benefits from the
appreciation of your home – not the bank, not the landlord.
-
Home ownership fosters a sense of
security and of stability.
-
To many, the allure of home ownership
is freedom from “sharing a wall” with your neighbor – you gain privacy.
-
Freedom to decorate as you please. No
need to ask permission from the landlord to repaint a wall in the family
room a vivid red, or to hang your favorite pictures.
-
You are free to own a pet – without a
pet deposit.
<go back>
copyright ©
Michael Feicco 2006
|
