There are many benefits to owning your own home that I would like to discuss in this post. Probably the most important benefit, aside from providing a roof over your head, is homeownership as an investment. Generally, homes appreciate about five percent a year. Some years will be more, and recently they have been less. This figure will vary from region to region, and neighborhood to neighborhood. Five percent may not seem like that much at first, because there have been years when the stock market has returned a lot more. But let’s take a second look. Let’s say that you bought a $200,000 house with 20% down. That would be an investment of $40,000. At an appreciation rate of 5% annually, a $200,000 house would increase in value $10,000 the first year of ownership. That means you earned $10,000 on a $40,000 investment or 25%! Of course, you are making monthly mortgage payments and paying property taxes. Since the interest on the mortgage and the property taxes are both tax-deductible, the government is essentially subsidizing your home purchase. Your rate of return when buying a home is higher than most any other investment you could make. Interest rates are at historically low levels and there is an oversupply of homes currently on the market . Take advantage of the first time homebuyers’ credit, or the move-up credit and buy a home before April 30. You will be glad you did!
Benefits of Home Ownership
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