7 Reasons to Own Your Own Home
- Tax Breaks. The US Tax Code may let you deduct some or all of the interest you pay on your mortgage, property taxes, and even some of the costs involved in buying and maintaining your home.
- Appreciation. Real estate has log term stable growth in value. While year- to- year fluctuations are normal, median existing home sale prices have increased on average by 4.5 percent from 1975-2014**. Home prices rose by 6.3% from April 2015 to April 2016. Longer term trends suggest that home prices will continue to rise over the next five years at an annual rate of 3.1%.
- Equity. Money paid for rent is money that you will never see again, but mortgage payments can help you build equity in your home.
- Savings. Building equity in your home can be a ready-made savings plan. When you sell,you can generally take a sizable capital gain without federal taxes.
- Predictability. Unlike rent, if you choose a fixed rate mortgage your monthly payments will remain the same over the years. Keep in mind that property taxes and insurance may 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 children the benefit of educational continuity.
Reprinted from Sunbelt Lending Services, stats taken from realtormag/realtor.org,corelogic.com and realtor.org.