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.
