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| The Advantages of Buying a Home |
The Advantages of Buying a Home
Buying a Home is at the heart of the "American Dream". It can
bring happiness and provide a solid foundation for you and your
family. It has many benefits, but the following three in
particular -
Tax Breaks
When compared to other investments, few can generate the healthy
and long lasting tax breaks that home ownership does. When you
become a homeowner, there may be tax breaks that you can take
advantage of the renters and non-homeowners cannot, the mortgage
interest deduction being just one of them. In addition, the
deduction of your real estate tax on your federal income tax
return is a common practice. Some homeowners |
choose to use their
homes equity to obtain Home Equity Lines of Credit (HELOC) or
home equity loans. Interest on these loans may also be tax
deductible. With proper planning you may receive tax advantages
that last a lifetime. As always, consult with your own tax
advisor as to the specific benefits of home ownership that apply
to you.
Equity
A home is an investment that can, and usually does, increase in
value over time. In some markets, home values have been rising
dramatically in recent years (California, Florida, Nevada,
etc.). In other markets the rise has been more slow and steady.
In addition, you can use your own hard work to make improvements
that will increase |
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the value of your home. Each improvement that
you make will add to the overall value of your home and your way
of living.
As the value of your home increases, and the amount of your
mortgage shrinks, you build equity. That is, the money that
would be left over if you sold your home and paid off the
mortgage. As mentioned above, you can borrow against this equity
should the need arise. It's almost like a savings account that
you live in.
Community
Moving into a home gives you a chance to meet new people, get
involved in your community, patronize local merchants, and shape
your new neighborhood. It's a way to put down roots and invest
in your town. Home ownership provides a |
sense of permanence and
a solid foundation for our lives.
Buying a home may be the single, largest investment you will
make in your life. But there are so many benefits, some tangible
and some emotional. Maybe now is the time for you to take the
plunge and buy a home, condominium or townhouse and experience
this part of the "American Dream".
About the author:
Vicki Walker is a Reator in Yolo County, California. She is
happy to assit buyers and sellers of real estate, homes and
investment property in Davis and Woodland. You can get more
information at Davis Real
Estate or Woodland
CA Real Estate.
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