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 Is buying a home the right thing for you to do? If you are a first time home buyer, it's normal to be nervous about that first big
purchase. Here are some great reasons
why you should buy a home, according to an article by Elizabeth Weintraub on
About.com.
1. It's YOURS! "Pride of ownership is the number one reason people yearn to
own a home," writes Weintraub. For the
first time you can paint the walls, turn up the volume and decorate as you
please. But making this big investment offers stability and security.
2. It's a Good Investment: Even
with the ups and downs of the real estate market, real estate overall has
appreciated.
3. Tax Deductions: "Home
ownership is a superb tax shelter and our tax rates favor homeowners." Says Weintraub. "As long as your mortgage balance is smaller
than the price of your home, mortgage
interest is fully deductible on your tax return. Interest is the largest
component of your mortgage payment."
Property taxes are also deductible
for a first home and a vacation home.
4. Capital Gains: You can exclude capital gains profits up to $500,000, as
long as you have lived in your home for 2 of the last five years and there is
no age restriction.
5. Preferential Tax Treatment: If the capital gains is more than the allowed
amount, the excess is taxed at a preferred rate says Weintraub.
6. Building Equity: Each month, part of your payment is applied
to the principal balance, which builds equity in your home.
7. Equity Loans: As long as you have equity in your home, you
can use it to obtain a loan to pay off home improvements, credit card debt, or
other high expense items when you need it.
Home ownership offers large rewards personally and
financially.
Take the first step and contact a knowledgeable real estate agent to
help you with the home buying process.
Read the full article at About.com
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Posted on February 14, 2012 13:25:56 by  Scott.Shields
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