Although many consider buying or owning a home of one’s own, it’s important to understand, recognize and realize some of the key reasons. this process. While many benefit in numerous ways from owning, the wise individual, learns and discovers some of the beneficial reasons, before making such an important decision.
For most people, the value of their house often represents their single – biggest financial asset? With that in mind this article will attempt to briefly consider, examine, review, and discuss 5 reasons home buying, makes sense in many ways.
1. Asset Value increase: When one rents, instead of owns a property, his monthly payments/ installments, go to his landlord and he merely benefits from having a place to hang – his – hat, but no ownership benefit! On the other hand, owning a property gives a degree of benefit financially.
Historically, over – time real estate adjusts upward with the so – called cost – of – living/ inflation, and, thus, the simple way of looking at this is considering, would you rather pay your landlord, or yourself? Many believe this personal investment is one of the best ways to preserve asset value, etc.
2. Real estate tax deduction: Although the real estate tax deduction, in some instances, is not as beneficial, as it once was due to the 2017 tax legislation which capped, state and local tax deductibility, at a maximum of #10, 000, for many, this is still, an advantage (even, if a more, limited – one, than it used to be).
3. Mortgage interest deduction: Interest paid on a mortgage for your primary home, is deductible, as long as the mortgage, in most cases, is, no more than #750,000. Obviously, for those, who itemize deductions, this may be a significant benefit.
4. Pride of home ownership: Owning a home, of one’s own, often, creates a positive, emotional attachment, we refer to, as the pride of ownership! In addition, when it’s your house, you can customize it (or not), as your finances, resources, needs, and priorities, dictate, as opposed, to the limits, when you are a tenant, instead!
5. The Dream: Many refer to the so – called Dream and to many people, a major component of that is home ownership! When living in something that’s yours makes you feel better.
Many people look forward to owning their home, instead of renting. Before you do, either, proceed, in a well – considered, way, and know, whether, this is a worthwhile goal, for you!