7 Reasons to Own Your Own Home
Source: National Association of Realtors: Guide to Home Buying
1.) Tax Breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home.
2.) Gains. Since 1989, national home prices increased at an average of 5.5% annually. And while there’s no guarantee of appreciation, it is estimated that, through price gains and reducing mortgages through payment of principle, a typical homeowner has $144,000 in equity in a home, based on data from the Federal Reserve.* *”Flow of Funds Accounts of the US,” Federal Reserve Statistical Release, Table B.100
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, fixed mortgage payments don’t go up over the years, so your housing costs may actually decline as you own the home longer. (Note: Adjustable mortgages may change if there is a change in interest rates.) However, keep in mind that property taxes and insurance costs may rise.
6.) Freedom. The home is yours. You can decorate any way you want and be able to 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 establish lasting friendships.
For more information on home ownership, contact Kevin & Monica Ray with Access Realty at 406-822-SOLD (7653) or 406-207-1185.
