1.
Tax breaks.
The U.S. Tax Code lets you deduct the interest you pay on your
mortgage, your property taxes, as well as some of the costs involved
in buying your home.
2.
Appreciation.
Real estate has long-term, stable growth in value. While year-to-year
fluctuations are normal, median existing-home sale prices have
increased on average 6.5 percent each year from 1972 through 2005,
and increased 88.5 percent over the last 10 years, according to the
NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S.
households is expected to rise 15 percent over the next decade,
creating continued high demand for housing.
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 fixed-mortgage payments don’t rise 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 increase.
6.
Freedom.
The
home is yours. You can decorate any way you want and 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.
Online
resources: To calculate whether buying is the best financial option
for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.
Reprinted
from REALTOR® Magazine (RealtorMag.Realtor.org)
with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright
2008. All rights reserved.