1. Tax breaks. The U.S. Tax Code lets you deduct
the interest you pay on your mortgage, property taxes you pay, and some
of the costs involved in buying your home.
2. Gains. In recent years, home prices have seen double-digit
percentage increases. While there is no guarantee that this will continue,
demand in the southern California market has remained strong.
3. Equity. Money paid for rent is money that you’ll never
see again, but mortgage payments let you build equity ownership interest
in your home.
4. Savings. Building equity in your home is a ready-made savings
plan. And when you sell, you can generally take up to $250,000 ($500,000
for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your mortgage payments don’t
go up over the years so your housing costs may actually decline as you
own the home longer. However, keep in mind that insurance costs can
rise as can property taxes if you make improvements to your home.
6. Freedom. The home is yours. You can decorate any way you want
and be able to benefit from your investment for as long as you own the
home.
7. Stability. Remaining in one neighborhood for several years
gives you a chance to participate in community activities, lets you
and your family establish lasting friendships, and offers children the
benefit of educational continuity.
