subject: Proven Reasons Why You Should be a Home Owner [print this page] Are you paying huge amounts of rent to your landlord, only to see more rent due next month? Would you rather those $1000's you spend every year went toward improving your financial situation rather than the landlords?
Consider . . .
Owning a home is one of the top American dreams. A home not only provides you and your family with shelter and security, but it can also provide many other benefits.
Homeowners move less often and are more likely to become involved in the community than renters. When you own your own home you become more tied to the community you live in. What goes on the community becomes a larger part of your life and you get involved by volunteering for local political and charitable causes. Want to get involved, buy a home.
Children of homeowners tend to do better in school and attain a higher level of education that do the children of parents who rent rather than own. The child who lives in a home that is owned, has a more stable secure place to live . They don't move as often and change schools. Their friends and the environment are more stable.
Dollar for dollar, the rate of return on an individual's cash down payment on a houses is substantial? Given the leverage in purchasing a home, the average rate return on a 5% down payment over 10 years is usually three to five times greater that stock market returns?
When you own your own home, you may be able to deduct the property taxes and mortgage interest from your income taxes. Please consult your tax professional to find out your savings, but when you deduct these items from your income taxes it may allow you to change the amount of exemptions you claim on your W-4 allowing you to have less in taxes taken out each pay period and putting more money in your pocket each month.
In most cases the gains that you make when you sell your primary residence are tax free. Example: you buy a nice house today that needs a little improving here and there, so you get a great deal. Over the next 2 years you make improvements in the home to make it more desirable and at the same time values in homes raise a bit. At the end of 2 years you sell the home and make a profit between what you sold it for and what you bought it for . . . in most cases this amount is tax free. You can then use that profit for a down payment on your next great deal and do it over and over again. This is a great way to build sweat equity over time and use it as a down payment on the next home.
If you want to find out more about buying you next home please contact your local Realtor or visit with the agents in our office at Realty Resource. Serving the greater Kansas City area, Realty Resource can be found online at www.RealtyResourceKC.com .
