What are the rewards for buying a home?

What are the rewards for buying a home? Beyond the joy of owning your own property and creating a home for your family, there are several potential financial rewards earned through home ownership. The first is appreciation. Despite the recent "mortgage meltdown" and decline in prices, historically your home is worth more when you sell it than when you bought it. That is why a home purchase is considered a great long-term investment. Financial flexibility is another benefit that comes from appreciation. When your home appreciates, you can sell it and use the profit to buy a bigger and better home... tap into the equity (what your home would sell for minus what you owe on the mortgage)... pay college tuition for the kids... or use it to fund your retirement. Another benefit is leverage. Buying a home allows you to use borrowed money (the mortgage) to profit on later price increases (appreciation) on property you have not paid for. Finally, there is the great benefit of tax breaks! You can deduct property taxes and mortgage interest and keep up to $500,000 of gains! All in all, home ownership is a wise investment in your personal and financial future!

Make it a great day,

Mike
(650)766-8500
mike@mikervin.com