Nest Seekers International

Home Ownership: The Benefits and Advantages

1. Freedom and Flexibility – One of the greatest advantages to owning your own home is the sense of freedom it gives you, as well as the flexibility you have to make alterations or improvements. You may exercise your own design and décor tastes to the fullest extent, and the best part is, the additions and alterations you make have the potential to add to your investment’s value.
2. Predictability and Stability – Your home is your rock. Rent rates change from year to year. Mortgage payments, on the other hand, should remain stable from year to year. In time, you may discover new ways to reduce housing costs even further. Be mindful, however, that your property tax and insurance costs may change, possibly frequently.

   In addition to the financial benefits to your family, owning a home in a singular location provides a great number of social and community benefits. Your children will benefit from an unbroken progression through their schooling, as well as remaining convenient to all of their friends. You have the opportunity to put down roots and truly become a part of your community, enjoying lifelong friendships and a sense of belonging.

3. Savings and Tax Breaks – According to the U.S. Tax Code, you are allowed to deduct not only interest paid on your mortgage but also property taxes and a number of the other costs associated with buying your own home.

   After purchasing your home, it can act like a supplementary savings plan. Building equity in your home or other property can pay great dividends. If you do decide to sell, you are generally allowed to claim up to $250,000.00 (or $500,000.00 for couples who are married) as gain before owing federal income tax.

4. Increases and Gains – U.S. home prices, on the national level, increased an average of 5.4% per year between 1998 and 2002. In 2001, the National Association of Realtors conducted a study which found that your average homeowner unknowingly has roughly $50,000.00 in unrealized property gain. While this appreciation is not guaranteed, the study provides a compelling average.
5. Equity and Accumulated Value – Money paid out as monthly rent vanishes, never to be seen again. Mortgage payments, on the other hand, build home equity. The money you pay is invested into your home. In the future, you may enjoy the ability to borrow against that equity investment.

   However, the accumulated financial value your home may provide is not the only advantage. Owning your own home allows you to build memories, and keep them with you. The walls you own provide a welcome home for the pictures you take as you build your new life around the things and people that you truly value.

Rent or Buy? Try these FREE financial calculators:

• Ginnie Mae: http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH
• Yahoo! Real Estate: http://realestate.yahoo.com/calculators/rent_vs_own.html
• Freddie Mac: http://www.freddiemac.com/corporate/buyown/english/calcs_tools/