-
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
percent each year from 1972 through 2005, and increased 88.5 percent 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 percent
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 longer. 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.
Online resources:
To calculate whether buying is the best financial option for you, use the “Buy
vs. Rent” calculator at www.GinnieMae.gov.
Source: Realtor Magazine
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