One of the most important and one of the most difficult choices a person can make is between renting and buying a house. This decision can be easier to make if you take a look at what stage of your life that you are in. When you rent you will have the flexibility of being able to move whenever you need to, when you own you first have to sell that home before you move, otherwise you will have an expense of running two households.
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. Being a first time home buyer you should notice that your taxes are 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.
Real estates trend always gains over the years, unlike a car or a boat, the value of your home should always increase. Excluding a few major 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.
When you buy your new home it is yours, you have the advantage of painting wherever you want, and you can remodel any way you like. You will no longer have any landlords as we all love them.
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