1. Tax Deductions
When you own a home, you will experience tax breaks. US Tax Code will allow you deduct interest you pay on the following:
- mortgage interest
- property taxes
- sales taxes
- mortgage insurance premiums
To learn more go to IRS.gov.
According to the National Association of Realtors, the median existing home sale prices have historically increased an average of 6.5 % each year, and has increased 88.5% over the last 10 years. The number of U.S. households is expected to increase 15% over the next decade, creating continued demand for housing. This means while year to year fluctuations are normal, real estate value as a whole is increasing value over time.
When you’re renting the money you pay each month doesn’t go anywhere. When you pay a mortgage your monthly payments become equity ownership interest over time.
Building equity in your home is similar to a savings plan. When you sell your house you generally take up to $250,000 ($500,000 as a married couple) as a gain without owing any federal income tax.
When you rent, your monthly payments may increase over time. However, when you own a home your monthly payments will decrease over time. Interest costs and property taxes may increase over time, but one thing can be sure, your monthly payments will not increase.
When you own your own home you have more freedom to make executive decisions on decorating, gardening, etc. Any changes you make to the home are considered an investment as long as you own it. You have the freedom to paint a wall if you want to or to make changes.
Questions To Ask Before Buying Your First Home:
- Why do you want to buy a home?
- What can you reasonably afford?
- Have you factored in the hidden costs?
- What kinds of loans do you qualify for?
- What will your life look like in 5 years?
- Are you ready to stay put for the next few years?
- What kind of neighborhood do you want?
Images and Sources: Business Insider, Realtor Magazine
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