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7 Reasons to Own Your Own
Home
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you
pay on your mortgage, property taxes you pay, as well as some of the
costs involved in buying your home.
2. Gains. Over last five years (1998-2002) national home prices have
increased at an average of 5.4 percent annually. And while there's
no guarantee of appreciation, a 2001 study by the National
Association of REALTORS® found that the typical homeowner has
approximately $50,000 of unrealized gain in a home.
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 mortgage payments don't go up
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 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 and
your family establish lasting friendships, and offers your children
the benefit of educational continuity.
To calculate whether renting or buying is the best financial option
for you, use this
online calculator
courtesy of Ginnie Mae.
Reprinted from
REALTOR® Magazine (http://www.realtor.org/realtormag)
with permission of the NATIONAL ASSOCIATION OF REALTORS®.
Copyright 2005. All rights reserved."
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