 The Advantages of Owning Your Own Home
FAST FACT: Sixty percent of a persons' wealth at their retirement is their home. Because we spend more than half our time at home shouldn't it be somewhere that is safe and comfortable as well as something we can put part of ourselves into.Buying a home is a good financial move because of three very important points: 1) Appreciation: Homes appreciate in value and as you build equity in your home, your ownership of the home increases. Ask yourself this . . . why pay-off someone else’s mortgage when you could be paying off your own? Note: The longer you own your home; you own more and more --the lender less and less. 2) Tax Deductions: Because you can deduct mortgage interest and property tax from State and Federal tax returns, your home is one of the best tax shelters you could ever invest in. Note: Tax laws also permit a one-time exemption of $125,000 appreciation on a principal resident after age 55. If you use this equity before or at retirement, you may do so without a large tax debt. READ THE FIRST TIME HOME BUYER TAX CREDIT 2009! Great information on the new tax credit of $8000 vs $7500 and what it means to you as a first time home buyer! 3.) Equity: Equity that you have built up can be borrowed against and used for a variety of purchases and investments—such as college tuition for your children, a new car, a boat, as well for a variety of purchases and investments. Note: Your equity can be used as a down payment on new or second home. |