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Is buying a house really a good investment? Or should
you continue renting and invest any extra cash? There
are two distinct advantages to buying a home:
Tax Advantages
Interest
you pay on your mortgage, property taxes, and points
you may have paid at closing are all deductible on your
federal and state tax returns. This usually means home
owners have lower income taxes. So, if your expected
house payment will be the same or close to your rent
payment, you could save money owning a home. Of course
you also need to consider maintenance costs. Consult
your tax advisor for advice on how much you might save
in taxes.
Appreciation
Appreciation is another key financial advantage of
owning a home. If you own your home and the value increases,
you get the profits. When your rental property increases
in value, the landlord benefits. Under current tax laws,
when you sell your home, up to $250,000 in appreciation
for an individual owner or $500,000 for a married couple
is tax-free income. Again, consult your tax advisor
for details.
So, should you buy? First, you may want to try our
Financing Calculators
Back to First Time Home Buyers
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