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there’s a lot of great reasons to own your own home:
- Tax breaks. You may be able to deduct your property taxes, and the interest you pay on your mortgage. This could bring down the amount of taxes owed each year.
- Equity. Each mortgage payment pays down your loan bit by bit. Money that goes toward rent just pays the landlord, and you’ll never see that money again. Don’t you think it’s better to put the money into something YOU own?
- Appreciation. Historically, median existing home sale prices have increased on average 6.5% from 1972 – 2005 according to the National Association of Realtors.
- Savings. By building equity in you home, you are saving money, because when you sell you will be able to take up to $250,000 ($500,000 per married couple) as a gain without owing federal income tax, as long as you’ve lived in the home for at least 2 out of the last 5 years.
- Predictability. Fixed mortgages payments don’t go up over the years (although insurance & property tax can rise). However, rent can increase at any time. You’ll never have to guess how much your mortgage payments will be, if you have a typical fixed rate mortgage.
- Freedom. Your home can be decorated and improved anyway you like. Many landlords won’t even let you paint walls anything other than white, let alone other improvements. Also, why would you want to improve your landlords property on your dime?
- Stability. Staying in one location for a number of years gives you the chance to get to know your neighbors & form tighter, long-term community relationships.