Top Reasons for Buying a Home

There are many reasons why home ownership is a great move.

Besides being the American Dream – home ownership has numerous benefits from personal to financial. Here are just a few examples:

1. Often, a home is the largest asset an individual has and is considered one of the most valuable investments available.

2. A home is one of the few investments that you can enjoy by living in it.

3. A portion of each mortgage payment you make goes to principal which builds equity or your wealth accumulated in the home.

4. You can deduct property taxes and qualified loan interest on your federal income tax return.

5. A homeowner can exclude up to $500,000 of capital gainS tax if married and filing jointly or up to $250,000 if single or filing separately. The home must have been the taxpayer’s principal residence for two of the previous five years.

6. There is not a requirement to purchase another home more expensive than the one sold. Homeowners are free to buy up or down with no tax consequences assuming their gain is less than the allowable amounts.

7. The real cost of renting adds up to a large expense. (At $700 per month, with a 6% rental increase per year, you will pay $110,719 over a 10 year period.)

8. First time homebuyer incentives make homeownership a very sweet deal.

9. Buying a home offers great leverage - where else can you buy this size of an investment with 5-10% down?

10. Pride of ownership – customize your home just the way you want it as a personal reflection of yourself and your family life!