- Tax breaks. It’s been said that the only guarantees in life are death and taxes – so why not get a break on how much you owe each year?! One of the major benefits of home ownership is the tax deductions you will be eligible to take. There are tax advantage and tax breaks whether you are a home owner with juts a primary residence where you live, or whether you also own investment properties that you rent out. Home owners are eligible for tax deductions on the mortgage interest they pay, which can really add up! These tax deductions reduce your total taxable income, as long as you itemize your deductions. Lower taxable income results in a lower tax owed to the government and more money back in your pocket come April.
- Homes are valuable assets. When you own your own home, every month you’re be making a payment directly towards a tangible, valuable asset: real estate. When you rent, you hand your money over to someone else, who in 15, 20 or 30 years will then own land and a building that has no mortgage on it. They could choose to live there, “rent free” (save for taxes and other normal living expenses), or they could continue to earn income on it, perhaps allowing for an earlier retirement. Although real estate values can certainly ebb and flow in the short-term, in the long-term real estate is nearly always a solid move. There’s also something nice about the idea of owning a home where you know you’ll stay, where your kids will grow and where your grandkids will come and visit. That home will be a built-in part of your families’ memories.
Monday, June 13, 2016
Traditionally, part of the American dream was home ownership, and many adults worked towards that goal. Following the recent housing bubble, many people began to question whether buying a home was actually smarter than renting, with some advocating that home ownership came with lots of risks and few real rewards. That couldn’t be further from the truth, though! There are many advantages to buying your own home, and we’ve gathered up several of them below!