In today’s world, one the primary goals for many people is to own their own home, and have it paid for by retirement age. Achieving this goal will provide the homeowner additional flexibility during their retirement years to enjoy the fruits of their labor due to increased savings. There are some positive reasons why many people desire to own their home versus renting:
Benefit from taxes – A homeowner is allowed to realize savings on their federal income taxes by deducting interest, property taxes paid on their homestead, and some expenses incurred when purchasing the property.
Benefit of appreciation – Over the long-run real estate has increase in value allowing homeowners to move-up, therefore, improving their lifestyle. Improving lifestyle means having more modern and improved amenities within their grasp.
Improved equity – Money paid for rent is gone when paid, but mortgage payment allows homeowner to build equity. This adds to your long-term wealth which can be taken advantage in your retirement years.
Creates savings – Great way to create additional savings by allowing homeowner to avoid capital gains tax up to $250, 000 ($500,000 for a married couple) when selling their home.
Mortgage payments – Mortgage payments are more predictable than rent. Fixed mortgage payments will not change, only the insurance and tax portion may change. In the long-run, the fixed mortgage may be less than rent payments.
Home improvements – Owning your own home provides you the freedom to make upgrades, and add amenities that fix your lifestyle.
Stability – Increases the possibility of developing long term relationships with people in the area, and gives children a better chance to achieve educational continuity.
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