When You Own Your Home, You' Re Truly In Charge

Category: Finance, Mortgages.

If you' re thinking about buying a home, it's important to weigh the pros and cons.

Security. Whether it's a castle, a beachfront condo, a city townhouse or a sprawling ranch, there are many advantages of owning a home. One of the most compelling reasons that people cite for buying their home is security. Many people feel more financially secure, knowing that they have built up a substantial equity in their own home. They want the peace of mind that comes with not having to deal with a landlord or noisy tenants in adjoining apartments with paper- thin walls. They like the security of knowing they can draw on that equity if needed for their children's education, medical expenses or retirement.

If you have children, there's nothing better than sending them to your own backyard to play, instead of taking them to the park. Freedom& Stability. Many people enjoy knowing that their children will grow up in the same neighborhood, with the same friends and schoolmates for many years. They can paint the walls any color they like, put up a satellite dish for their TV and build customized shelves without worrying what the landlord will think. Senior citizens and single people appreciate the freedom of home ownership. Owning your own home also eases those nagging fears about rent inflation.

Investment. When you own your home, you' re truly in charge. Housing prices fluctuate slightly, but historically real estate has proven to be one of the best investments over time. Instead of putting money in your landlord's pocket, why not make a lasting investment in your future? It's a cliche worth repeating: paying rent is like pouring your money down the drain. Tax Advantages.

Much of the interest and property taxes that you pay is a deduction on your annual income taxes. One of the biggest reasons to own a home is the tax advantages it confers. Many buyers find that home ownership gives them hidden tax benefits. A renter may not have enough deductions to make it profitable to itemiz- a homeowner almost always does. Because they now itemize their taxes, they can also deduct state income taxes, theft losses, charitable donations, moving expenses and miscellaneous items. Home ownership is a big responsibility, and it does involve some maintenance. However, most people of all ages in every income bracket find that home ownership makes sense when they consider security, independence, freedom, investment and the tax advantages.

If you plan to move across the country every year or don' have a reliable income, then homeownership might not be the right choice for you.