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Benefits of Home
Ownership
Owning
a home can bring financial rewards as well as a personal satisfaction that
comes with knowing that you have a piece of the American dream. The
financial benefits of homeownership range from the tax breaks that the
owner can enjoy by writing off interest to the possible appreciation in
the equity of the home over time. To understand the full extent of
possible tax benefits, it is strongly suggested that you contact your
financial advisor and accountant about your particular situation. Some of
the financial benefits may include:
1.
Appreciation - Real estate values have a tendency to rise over a period of
years.
2.
Tax advantages - Homeowners may deduct mortgage interest and property
taxes as an expense against income, while residential investors may write
off cost recovery or depreciation.
3.
Being a tangible asset, Real Estate is generally seen by lenders as low
risk, durable and marketable. Therefore, lenders are more willing to loan
a high percentage of value. This allows owners to benefit by having
control over an entire high-value asset with a low initial investment or
down payment.
4.
Real estate is marketable - it can be sold at a predicable price to a
dependable group of available buyers, provided enough time is allowed to
expose the property to those buyers.
5.
Real estate provides its owner with valuable control and management of its
value. Insert the page that is already on-line. It deals exclusively with
financial benefits:
The
personal benefits are less easy to translate into a specific list, but are
in many cases equally compelling as a reason to buy. The following is a
list of common motivations that inspire people to own their own homes.
- Owning my own home provides me
with a deep sense of security. I need to own in order to feel that I
have roots and really belong to my community.
- I can make my own decisions
about design and decor.
- I can invest in upgrades that
will not only bring me pleasure but can also add to the value of the
property over time.
The
decision to buy has as much to do with your personal needs as it does to
do with the financial reasons that can motivate a buyer. Do the math to
understand the monetary ramifications. Take time to understand your own
motivations before you rush into this decision. Homeownership has its
definite rewards. Pursue them with wisdom!
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