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.