7 Reasons to Own Your
Home
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
THE DO'S AND DON'T OF HOME BUYING
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