7 Reasons To Own Your Own Home
1. Tax Breaks – The interest you pay on your mortgage, property taxes and some of your closing costs are all tax deductible.
2. Gains – Between 1998 and 2002, national home prices have increased an average of 5.4% annually. While no one can guarantee appreciation rates, the National Association of Realtors found a typical homeowner has approximately $50,000 of unrealized gain in their home.
3. Equity – Rent money is money that is thrown away while mortgage payments build equity. In 2003, the average renter was worth $5,000. the average homeowner was worth $175,000.
4. Savings – building equity in your home is a ready made savings plan. When you sell, you can generally take up to $250,000 as gain without paying federal income tax.
5. Predictability – Unlike rent, your mortgage payments don’t increase. Your housing costs may actually decline as you own your home longer. Keep in mind that property taxes and insurance costs may rise, however.
6. Freedom – The home is yours. You may decorate and make improvements as you wish, as well as, benefit from the improvements you make.
7. Stability – Being members of a community allows you to participate in community activities, establish lasting friendships, and offers your children the benefit of educational continuity.
If you are considering buying your first New Jersey home, contact me. I will be assist you in determining if renting or buying is the right decision for you.