The Great Benefits of Buying a New Home
April 7, 2010 | In: General
A very difficult choice that a person or a family can make is between renting and buying a home. This decision can be easier to make if you take a look at what stage of your life that you are in. Renters have a big flexibility, they can move whenever the need is, and they are not stuck with a mortgage before the house is sold.
The main thought when you consider buying a home is you will be eligible for many economic benefits from your investment. If you choose to be a homeowner you will have to your advantage many tax incentives, like property tax and mortgage interest deductions. This is similar to building a new house. If you are going to be a first time homeowner you need to take notice that taxes are in fact fully deductible.
Homeowners that have lived in their home for two out of five years, there will be a capital gain exclusion law that will let them deduct up to $500, 000 of the earnings from capital gains. This means lower tax for homeowners. This is similar to renters occasionally. Over years real estate always gains, this is not like a car or a boat, the home value will always increase. Except for some dips in the market. This should be a factor that is considered when pondering the benefits of buying a new home.
See your monthly payments on your mortgage as rent. By doing this it will help you pay off your home. Every time that you make a payment on your mortgage, this increases the equity on your home, just like homeowners. When you buy your own home you can call it yours, you can paint whatever you want, and you can remodel they way that you choose. Another key bonus is no more landlords.
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