1. Tax breaks. The U.S. Tax Code lets you deduct
the interest you pay on your mortgage, property taxes you, pay, as
well as some of the costs involved in buying your home.
2. Gains. Over last five years (1998-2002)
national home prices have increased at an average of 5.4 percent
annually. And while there’s no guarantee of appreciation, a 2001
study by the National Association of REALTORS
found that typical homeowner has
approximately $50,000 of unrealized gain in a home.
3. Equity. Money paid for rent is money that
you’ll never see again, but mortgage payments let you build equity
ownership interest in your home.
4. Savings. 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.
5. Predictability. Unlike rent, your mortgage
payments don’t go up over the years so your housing costs may
actually decline as you own the home longer. However, keep in mind
that property taxes and insurance costs will rise.
6. Freedom. The home is yours. You can decorate
any way you want and be able to benefit from your investment for as
long as you own the home.
7. Stability. Remaining in one neighborhood for
several years gives you a chance to participate in community
activities, lets you and your family establish lasting friendships,
and offers your children the benefit of educational continuity.
To calculate whether renting or buying is the best
financial option for you, use this calculator courtesy of Ginnie
Mae.
http://www.ginniemae.gov/ypth/rent_vs_buy/Rent_vs_buy.htm
