Buying a Home
The housing bubble sent the price and demand for rentals to
unprecedented heights. Along with low-interest rates, the new data shows
that owning a home can be less expensive than renting. It is more
affordable to buy a house today than it has been in ages.
Six Additional Reasons to Buy a Home.
1. Equity. When you pay rent, you don’t own anything. When you pay a
mortgage, you increase your degree of ownership in your home with every
payment. Also, you can borrow against your ownership (or equity) in the
home to pay for major purchases, or refinance your home at favorable
rates, or once you’ve paid the entire mortgage off, borrow to fund major
purchases like a second home or a child’s education.
2. Tax Deductions. You can deduct mortgage interest as well as your
property taxes. Uncle Sam doesn’t give renters a bonus. And when you
sell, you can generally take up to $250,000 ($500,000 for a married
couple) as capital gain without owing any federal income tax.
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