Buying a Home is a Smart Investment

Buying a Home Is a Smart Investment

There are almost as many reasons to rent as there are to buy. You notice, I said there are ALMOST as many reasons to rent. Buying your home is normally one of the best options and most fiscally sound. If you're temporarily in an area, renting is the best possible option. However, if you're in an area you love and want to make it your home, buying is almost always the best way to go. Since everyone's situation is different, listing the reasons it pays to buy a home is probably the easiest way to illuminate the situation.

1 You control your castle.

Okay, that's a little dramatic, but it's basically true. If you rent a home and want to make changes in the structure or even pound a nail to hang a picture, you either can't or you have to get permission. The landlord can inspect the house when he or she chooses, depending on the wording of your lease. While repairs are all completed by the landlord, it's on his or her schedule, not yours. You could be waiting weeks for it to be done.

When you own a home, even though you have to pay for the repairs or do them yourself, you decide the timing. There is no unexpected inspection of the house and you decide how you'll decorate it, paint the walls, hang pictures or even change the floor plan.

2 You have a fixed payment.

Even if housing costs skyrocket, your mortgage payment won't change, as long as it's a fixed interest rate. Property taxes and insurance may rise a bit, but not nearly as much as the cost of rent.

3 You have an appreciating asset.

Prices of real estate will rise and drop, it's part of the cycle. However, each time they drop, the price is still higher than it was 20 years previously. You need to live somewhere, so you have the option of putting the money into an investment owned by someone else or into your own home investment.

4 You can tax deduct interest and property taxes.

While some states allow you to deduct a portion of your rent, in most cases, there are no other deductions for a renter. Depending on your tax bracket, it can create a significant savings each year.

5 You'll build equity in the house.

The equity can be used even if you don't sell the home. You can secure a home equity loan to use for emergencies that has lower interest rates than most credit cards.

6 When you sell the home, you don't have to pay capital gain tax.

As people get older and are close to retirement or retired, they often find they need a smaller place. You can sell your home and make up to $250,000 per person or $500,000 as a couple without paying any tax on the profit. You don't have to wait until you're old to do it either and you can do it more than once. That makes home ownership another potential source of income during your retirement years.

Buying a Home Is a Smart Investment

There are almost as many reasons to rent as there are to buy. You notice, I said there are ALMOST as many reasons to rent. Buying your home is normally one of the best options and most fiscally sound. If you're temporarily in an area, renting is the best possible option. However, if you're in an area you love and want to make it your home, buying is almost always the best way to go. Since everyone's situation is different, listing the reasons it pays to buy a home is probably the easiest way to illuminate the situation.

1 You control your castle.

Okay, that's a little dramatic, but it's basically true. If you rent a home and want to make changes in the structure or even pound a nail to hang a picture, you either can't or you have to get permission. The landlord can inspect the house when he or she chooses, depending on the wording of your lease. While repairs are all completed by the landlord, it's on his or her schedule, not yours. You could be waiting weeks for it to be done.

When you own a home, even though you have to pay for the repairs or do them yourself, you decide the timing. There is no unexpected inspection of the house and you decide how you'll decorate it, paint the walls, hang pictures or even change the floor plan.

2 You have a fixed payment.

Even if housing costs skyrocket, your mortgage payment won't change, as long as it's a fixed interest rate. Property taxes and insurance may rise a bit, but not nearly as much as the cost of rent.

3 You have an appreciating asset.

Prices of real estate will rise and drop, it's part of the cycle. However, each time they drop, the price is still higher than it was 20 years previously. You need to live somewhere, so you have the option of putting the money into an investment owned by someone else or into your own home investment.

4 You can tax deduct interest and property taxes.

While some states allow you to deduct a portion of your rent, in most cases, there are no other deductions for a renter. Depending on your tax bracket, it can create a significant savings each year.

5 You'll build equity in the house.

The equity can be used even if you don't sell the home. You can secure a home equity loan to use for emergencies that has lower interest rates than most credit cards.

6 When you sell the home, you don't have to pay capital gain tax.

As people get older and are close to retirement or retired, they often find they need a smaller place. You can sell your home and make up to $250,000 per person or $500,000 as a couple without paying any tax on the profit. You don't have to wait until you're old to do it either and you can do it more than once. That makes home ownership another potential source of income during your retirement years.

Buying a Home Is a Smart Investment

There are almost as many reasons to rent as there are to buy. You notice, I said there are ALMOST as many reasons to rent. Buying your home is normally one of the best options and most fiscally sound. If you're temporarily in an area, renting is the best possible option. However, if you're in an area you love and want to make it your home, buying is almost always the best way to go. Since everyone's situation is different, listing the reasons it pays to buy a home is probably the easiest way to illuminate the situation.

1 You control your castle.

Okay, that's a little dramatic, but it's basically true. If you rent a home and want to make changes in the structure or even pound a nail to hang a picture, you either can't or you have to get permission. The landlord can inspect the house when he or she chooses, depending on the wording of your lease. While repairs are all completed by the landlord, it's on his or her schedule, not yours. You could be waiting weeks for it to be done.

When you own a home, even though you have to pay for the repairs or do them yourself, you decide the timing. There is no unexpected inspection of the house and you decide how you'll decorate it, paint the walls, hang pictures or even change the floor plan.

2 You have a fixed payment.

Even if housing costs skyrocket, your mortgage payment won't change, as long as it's a fixed interest rate. Property taxes and insurance may rise a bit, but not nearly as much as the cost of rent.

3 You have an appreciating asset.

Prices of real estate will rise and drop, it's part of the cycle. However, each time they drop, the price is still higher than it was 20 years previously. You need to live somewhere, so you have the option of putting the money into an investment owned by someone else or into your own home investment.

4 You can tax deduct interest and property taxes.

While some states allow you to deduct a portion of your rent, in most cases, there are no other deductions for a renter. Depending on your tax bracket, it can create a significant savings each year.

5 You'll build equity in the house.

The equity can be used even if you don't sell the home. You can secure a home equity loan to use for emergencies that has lower interest rates than most credit cards.

6 When you sell the home, you don't have to pay capital gain tax.

As people get older and are close to retirement or retired, they often find they need a smaller place. You can sell your home and make up to $250,000 per person or $500,000 as a couple without paying any tax on the profit. You don't have to wait until you're old to do it either and you can do it more than once. That makes home ownership another potential source of income during your retirement years.

Buying a Home Is a Smart Investment

There are almost as many reasons to rent as there are to buy. You notice, I said there are ALMOST as many reasons to rent. Buying your home is normally one of the best options and most fiscally sound. If you're temporarily in an area, renting is the best possible option. However, if you're in an area you love and want to make it your home, buying is almost always the best way to go. Since everyone's situation is different, listing the reasons it pays to buy a home is probably the easiest way to illuminate the situation.

1 You control your castle.

Okay, that's a little dramatic, but it's basically true. If you rent a home and want to make changes in the structure or even pound a nail to hang a picture, you either can't or you have to get permission. The landlord can inspect the house when he or she chooses, depending on the wording of your lease. While repairs are all completed by the landlord, it's on his or her schedule, not yours. You could be waiting weeks for it to be done.

When you own a home, even though you have to pay for the repairs or do them yourself, you decide the timing. There is no unexpected inspection of the house and you decide how you'll decorate it, paint the walls, hang pictures or even change the floor plan.

2 You have a fixed payment.

Even if housing costs skyrocket, your mortgage payment won't change, as long as it's a fixed interest rate. Property taxes and insurance may rise a bit, but not nearly as much as the cost of rent.

3 You have an appreciating asset.

Prices of real estate will rise and drop, it's part of the cycle. However, each time they drop, the price is still higher than it was 20 years previously. You need to live somewhere, so you have the option of putting the money into an investment owned by someone else or into your own home investment.

4 You can tax deduct interest and property taxes.

While some states allow you to deduct a portion of your rent, in most cases, there are no other deductions for a renter. Depending on your tax bracket, it can create a significant savings each year.

5 You'll build equity in the house.

The equity can be used even if you don't sell the home. You can secure a home equity loan to use for emergencies that has lower interest rates than most credit cards.

6 When you sell the home, you don't have to pay capital gain tax.

As people get older and are close to retirement or retired, they often find they need a smaller place. You can sell your home and make up to $250,000 per person or $500,000 as a couple without paying any tax on the profit. You don't have to wait until you're old to do it either and you can do it more than once. That makes home ownership another potential source of income during your retirement years.