Benefits of Homeownership

Owning your own home has so many benefits when compared to renting. Some benefits are intangible and some are very tangible. Below are some things to consider on the road to homeownership.

Tax advantages: you probably know the mortgage interest deduction has essentially been eliminated for many, but taxpayers who have additional itemized deductions may still be able to take advantage of it. And property taxes are still deductible within limits. Homeowners who sell can also take advantage of the capital gain exclusion, up to $250,000 for an individual or $500,000 for a married couple, provided they’ve lived in their home for two of the past five years.

Equity loans: the rates on home equity loans are typically much lower than credit card rates (and often the interest is deductible). The ability to take out an equity loan is still a definite benefit to homeownership.

Leverage: Where else can you obtain appreciation on 100% of an investment when you have only paid for a small percentage of it? Imagine you’re deciding between financing a home and placing $20,000 in the bank. Banks may return 2% interest on your investment (2% × $20,000 = $400 per year). But if you use $20,000 as a down payment on a $400,000 home, and housing prices rise just 2%, you’ve just increased your return by $8,000 (2% × $400,000).  Doesn’t that sound better?

Stability: In addition to stable housing payments (principal and interest on a fixed-rate mortgage remains the same amount for the life of the loan), you will not have to worry about being asked to leave by a landlord who decides to convert apartments to condos, for instance.  Or the current landlord sells to a new landlord who wants to move his mother in at the end of your lease. It’s a fact that homeowners tend to remain in place longer than renters.  So it’s possible to build relationships with neighbors and feel the appreciation of community as well.

Hedge against inflation: The principal and interest of a fixed-rate mortgage don’t change over 30 years, and your real estate taxes, homeowners insurance and homeowners association dues typically increase slower rental price increases, and a 4% to 6% rent increase per year isn’t unheard of in a normal market. (Of course many renters have seen much sharper increases recently.)

Pride of ownership:  this has been a part of the American Dream forever. Owning one’s own home and maintaining and improving it provides a feeling of security, a built-in savings plan (equity), and a sense of success. Real estate you own can be passed on to your heirs; your rental can’t. Plus pets aren’t an issue (as long as you follow local codes). Have you ever had trouble getting a rental that would accept Fifi? It happens!

Do you have a need for commercial / industrial / retail buildings or land? Are you ready to buy or sell a home? Do you want a guaranteed cash offer? We can help you with all of that… just call us at 702 SELL NOW or click on this link to my website

Choose to have an amazing day….Jeff

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