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Home Ownership
Should you buy or
should you rent? This has become a complicated question for thousands of
consumers. Not only is this question loaded with personal and lifestyle
considerations but financial issues as well. For some, buying is the only
sensible thing to do and for others, renting is much more convenient. Most
homeowners enjoy the pride of owning such a large investment, and others enjoy
having a place to call "home". There are several advantages that go along with
homeownership. Here are a few:
- Tax Breaks
Federal
tax laws strongly favor homeowners. Mortgage interest and property taxes are
generally tax deductible on your federal return. This can in turn provide you
with an enormous tax benefit.
Capital gains benefits allow
the homeowner to profit without paying taxes when selling their main residence.
Please consult your legal or tax expert for restrictions and application of
this popular tax benefit.
- Ability to Borrow Against
Equity
As a homeowner, you can borrow against the equity in your home
using either a second mortgage or a home equity line of credit. The interest of
such loans may be tax deductible, regardless of how you use the money. Many
homeowners use home equity loans to consolidate other high-interest loans, to
make repairs and improvements, and even to fund a child's education.
- Leverage
When
buying a home, you will probably use some of your own money ( your down
payment) and a large amount of someone else's (borrowed funds from your bank or
other mortgage lender). If you are buying your second home, you can leverage
the appreciated equity or profit into the purchase of your next home.
- Renovations
As a
homeowner, you have almost unlimited ability to adapt your living space to suit
your individual tastes and needs. You can paint, wallpaper, decorate,
landscape, and even have the potential to add more rooms. The possibilities are
virtually endless.
Buying a house is a huge decision for a large
investment. Mike & Kim Plisky, your neighborhood real estate professionals
are a good place to start when considering purchasing a home.
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