THE ADVANTAGES OF HOME OWNERSHIP
BUYING A HOME IS AN EMOTIONAL ISSUE, and not one that should be taken lightly. Whether it is better to own than rent is dependent on a number of factors.
You've been renting for a while. You've enjoyed it. You have the freedom to move without the worry of selling a home first. You don't make repairs or pay property taxes. But something's
missing -- a sense of security, or perhaps a gut feeling that your monthly payments are going into a bottomless pit.
You think it might be time to take a step in another direction.
You're ready to buy a home, but have some questions about the benefits of home ownership.
The US government allows tax incentives that make it possible for many homeowners to exceed the standard yearly deduction.
- Deduct the yearly interest on your primary home. This amount equals a big chunk of your total payments for the first several years.
- Deduct the total amount of your yearly property tax bill.
You might wish to refinance to consolidate other debts. These loans typically carry a lower interest rate than the debts they replace, plus, the interest on the home equity loan is tax deductible.
Monthly payments can change if property taxes and insurance go up, but increases usually happen gradually. Rental fees can sometimes be more unpredictable.