The Advantages of Home Ownership John Doe Higher Learning University Prof. Jones, Economics 101.
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The Advantages of The Advantages of Home Ownership Home Ownership John Doe Higher Learning University Prof. Jones, Economics 101
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Transcript of The Advantages of Home Ownership John Doe Higher Learning University Prof. Jones, Economics 101.
The Advantages ofThe Advantages ofHome OwnershipHome Ownership
John DoeHigher Learning UniversityProf. Jones, Economics 101
Appreciation, Equity and Appreciation, Equity and PridePride
Appreciation: Homes accrue in value over time
Equity: As the mortgage is paid off, an owner builds equity which can be borrowed against in the future
Pride: The pride and security of ownership is the main reason that people buy homes
Tax AdvantagesTax Advantages
Tax Reports: Interest on mortgages can be deducted on tax reportsIncome Tax: Property taxes paid on real estate that is considered a first home or a vacation home are fully deductibleCapital Gains Tax: If you have lived in your home two to five years and it has accrued in value, either 250K for an individual or 500K for a couple can be excluded from capital gains.
Credit, Stability and Other Credit, Stability and Other IssuesIssues
Establishes Credit: When you buy a home and make your payments on time, it can help you establish strong credit.
Stable Housing Costs: While the prices of rent can inflate, the payments with a fixed APR mortgage stay the same. This makes saving and budgeting easier.
Other Taxes: If your capital gains profits exceed the previously discussed limits, this is a capital asset and is treated preferentially by the IRS.
Works CitedWorks Cited Weintraub, Elizabeth. 2008. “Look at Eight
Reasons to Buy a Home.” About.com. Retrieved April 19, 2008 from: http://homebuying.about.com/od/buyingahome/bb/buyhome.htm.
“First Time Home Buyer: The Advantages of Home Ownership.” 2008. Home Loan Center. Retrieved April 19, 2008 from: http://www.homeloancenter.com/HomePurchase/FirstTimeHomeowners.aspx.
“Should I Rent or Buy? “ n.d. Retrieved April 19, 2008 from: http://www.whyrent.ca/.
