Unique tax benefits apply only to homeownership; mortgage interest and property taxes are deductible. Moreover, for married couples, profits of up to $500,000 on the sale of a principal residence are exempt from capital gains taxes. For single taxpayers, $250,000 is excluded from tax on capital gains.
When buyers purchase a home, they receive the full benefit of homeownership via a cash down payment that is only a fraction of the total purchase price. This is called "leveraging". It makes the rate of return on a home purchase greater than on other purchases with the same value, such as stocks, where the buyer must put up the entire money.
For most Americans, their home is a primary source of net worth; this is an important step in accumulating personal financial assets over the long term. Home equity represents the largest share of net worth for many families. Americans currently have a total of more than $6 trillion in equity in their homes.
Although there are many positive financial aspects to being a home owner, a house cannot be valued in monetary terms alone. A home provides sanctuary and a sense of belonging to a community as evidenced in many Katy neighborhoods. This usually leads to great personal satisfaction.
Academic research shows that owning a home provides a wide range of social benefits. It strengthens the nation's people and its communities. It is a cornerstone of the American way of life. Katy residential real estate supports this finding.
For a Realtor with 21 years experience selling Katy real estate, contact me via this blogsite or phone me at 713-818-2404. I work with both sellers and buyers to create a win/win atmosphere and a successful, profitable outcome.
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