The #1 advantage to home ownership, in my book, is the fact that it is actually much less than renting when we take into account all the tax savings benefits there are.
Let’s take the same house where the total monthly payment is the same whether you are renting it or paying the mortgage PITI (principal, interest, taxes and insurance). With prices being as competitive as they are and interest rates being as low as they are this is an common scenario.... sometime the mortgage payment is even less than what rent would be on the home!
One is always under the impression that when renting since repairs are typically made by the landlord, that there is much more benefit to renting because it is cheaper plain and simple.
This is not necessarily the case. Especially in the first years of home ownership, when the majority of the payment is going to interest, it can be much less expensive to be a homeowner. Why? There is a major tax break when property taxes and interest paid on the mortgage are deducted from you total income. This can reduce a person’s income liability and/or tax bracket significantly. The major repairs are typically related to roof, HVAC or the major appliances and normally, with proper maintenance there aren't typically major repairs every year. So with the major tax savings one experiences, it normally off sets those itchy repairs!
Hence, savings galore!
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