Is Home ownership right for you? Buying a home is a big commitment. Only you know if it is right for you. Here are just some of the reasons millions of people have decided to make the move to home ownership.
- Currently the U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
- Real estate has long-term, stable growth in value. While year- to -year fluctuations are normal and appreciation is not guaranteed, Real Estate historically is a good investment. According to neighborhoodscount.com, median annual existing-home sale prices in the DC and Maryland suburbs have increased an average 4.67%over the last 5 years (2009 to 2014), and 3.65% over the last 10 years (2004 to 2014).This is a total average appreciation of 43.60%.
- Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
- Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
- Unlike rent, your fixed-mortgage payments don’t rise over the years. Keep in mind that property taxes and insurance costs may increase.
- The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
- Remaining in one neighborhood for several years gives you a chance toparticipate in community activities, establish lasting friendships, and offers childrenthe benefit of educational continuity.
To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator here.