In general, a person's home is their single biggest investment. Purchasing a home can be a rewarding experience if it is done with the right expectations. Here are just seven of the many advantages to owning your own home.
1. Tax breaks: The U.S. Tax Code lets you deduct the interest you pay on your mortgage, the property taxes you pay, as well as some of the costs involved in buying and selling your home.
2. Gains. Real Estate, should not be looked at as a short term investment, it is cyclical, but over the long term is has appreciated. Nationally, housing has appreciated every year since 1997 (with the exception of 2007) According to the Office of Federal Housing Oversight.
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. Over the long run, 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 mortgage payments don't go up over the years (assuming you finance your home using a fixed rate mortgage), keep in mind that property taxes and insurance costs will rise.
6. Freedom. The home is yours. You can decorate any way you want and be able to 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.
John Karadsheh is a licensed REALTOR® with Coldwell Banker Trails And Paths Premier Properties. He is also an Associate Broker, Accredited Buyers Representative and a Certified Residential Specialist. You can contact John with any of your real estate questions. Call him at (602) 615-0843, or go to his Web site at www.BuyAndSellAZ.com. You can also view his humorous Bad MLS Photos, Facebook page at http://www.facebook.com/BadMLSPhotos