Historically, real estate has had a long-term, stable growth in worth. In fact, average single-family existing-home prices have actually increased typically 5.2 percent each year from 1972 through 2014. The current housing crisis has actually triggered some to question the long-term value of property, but even in the most recent 10 years, which included numerous extremely bad years for real estate, values are still up 7.0 percent on a cumulative basis. In addition, the variety of U.S. families is expected to rise 10 to 15 percent over the next years, producing continued high need for housing.
Money paid for rent is cash that you’ll never see once again, however home loan payments let you develop equity ownership interest in your house.
Unlike rent, your fixed-rate home loan payments do not rise throughout the years so your housing costs might in fact decline as you own the house longer. Nevertheless, bear in mind that real estate tax and insurance costs will likely increase.
Historically, real estate has had a long-lasting, steady growth in value. The current housing crisis has actually caused some to question the long-term value of real estate, but even in the most recent 10 years, which included rather a couple of extremely bad years for real estate, values are still up 7.0 percent on a cumulative basis. In addition, the number of U.S. homes is expected to rise 10 to 15 percent over the next years, developing ongoing high need for housing.
The house is yours. You can decorate any way you desire and choose the kinds of upgrades and new amenities that appeal to your way of life.
5. Tax benefits.
The U.S. Tax Code lets you subtract the interest you pay on your home mortgage, your property taxes, and a few of the costs associated with buying a home.
Structured equity in your home is a ready-made cost savings strategy. And when you sell, you can usually take up to $250,000 ($500,000 for a couple) as gain without owing any federal income tax.
Remaining in one community for several years permits you and your household time to develop long-lasting relationships within the neighborhood. It also provides children the advantage of academic and social connection.