Updated: Feb 27, 2020
With the growing rate of rental properties, it is evident that people have no clue that they are throwing away money. Saving coins is just one of the reasons why you should own a home.
Here are 7 reasons why you should own a 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.
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.
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
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.
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.
The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
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.
So instead of throwing away your money in rental costs and ... plan to buy a home instead. There are literally 5 steps to buying home and they are simple. Do yourself a favor and buy.
Lisa W. Jefferson is a Georgia Real Estate Broker with 20 years of experience under her belt. She is "blessed to be a blessing" and dedicated to helping the community stay educated on home buying, home selling, and investing. You can get the guide Take Charge! Buying & Selling Real Estate.