Seminar #4 - Advantages to Home Ownership
Do you know how much money you throw away when you rent? When you buy a home, you can live in your investment as you build equity!
Many first time home buyers are anxious to buy a home, but nervous to start the process. Relax! It’s normal, and the more knowledge you have, the less scary it is. Consider these advantages of homeownership:
Pride of Ownership
Pride of ownership is probably the most significant reason why people yearn to own their home. It means you can have a pet, blast your music, and decorate any way you want! You make and investment in your future, and all your own decisions!
Renting vs. Owning
When you rent, you are practically throwing money away instead of investing in your future. Not only is the monthly payment less, but you are paying your landlord’s mortgage instead of your own!
The Tax Advantage
Mortgage Interest Deductions
Pay Less Taxes! As a homeowner, you are able to deduct part, if not all, of the mortgage interest and property taxes you pay on your home. Check with your tax professional, this is potentially thousands of dollars in savings each year!
Appreciation
In the short term, the real estate market ebbs and flows. In the long term, a home is one of the best assets you can have in terms of return on investment. As the value of your home increases, so does your equity.
Mortgage Reduction Builds Equity
When you pay your mortgage each month, the amount you owe decreases and the equity in your home increases even further.
Capital Gain Exclusion
Earning money off your real estate investment can also be tax-free! If your profit on your primary home is less than $250,000 as an individual or $500,000 as a married couple, you don’t have to pay capital gains taxes. Some exclusions apply, talk to your tax professional. See IRS tax tip
Equity Loans
Deep in credit card debt? Take an equity loan on your home to pay significantly less interest. Or, make home improvements, pay college tuition, start a business instead! You could potentially get a tax deduction on this interest as well!
Click on the link to send an email with any questions to Joe D "The Dean" of BuyAHouse101
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