WASHINGTON, D.C. – June 28, 2013 – (RealEstateRama) — Generation Y—also known as the Millennials—are now of the age where they may be thinking about home buying. And as the market picks up, we will start to see many renters in their mid 20s to early 30s jumping on the home-buying bandwagon. To help educate those considering becoming a first time homeowner, Patricia Bell, President of Gloria Nilson Realtors, Real Living highlights the top 6 benefits to owning your own home.
1. Appreciation
“Real estate is the best financial investment you can make,” says Bell. And despite the fact that the market moves in cycles, in general, real estate continues to appreciate. “Putting your money into a home is financially smarter than letting it sit in the bank, or sinking it into stocks,” says Bell. “You are literally living in your investment.”
2. Property Tax Deductions
Real estate property taxes paid for a first home are fully deductible. “For Gen Y, or anyone unfamiliar with property tax deductions, it’s a good idea to take a look at the tax information on IRS Publication 530,” Bell suggests.
3. Mortgage Interest Deductions
There has been some talk recently of doing away with mortgage interest deductions, but for now, they hold strong. “Interest is a large component of your mortgage payment,” says Bell, “so being able to deduct it on your tax return is huge.”
4. Capital Gains Exclusion
Whenever you’re ready to sell, you can make the most of the capital gains exclusion, Bell notes, which enables you to pocket a large chunk of the money-250,000 for an individual or $500,000 for a married couple–you make from a home-sale without being taxed. “This makes real estate an even smarter investment,” says Bell.
5. Equity Loans
“Being a homeowner makes you eligible for home equity loans,” Bell notes. “These are smart because the interest is both low and tax deductible.” This is smarter than carrying a high credit card balance, which has a higher interest and is not deductible. “While most think home equity loans can only be used for home improvement, they can also be used to pay for college, medical bills, or to start up a business,” Bell explains.
6. Pride of Ownership
“This may be the number one reason to own a home,” says Bell. “Owning a home is not only a financial investment, but an investment in your future, something your family can benefit from, and something that will provide you with a sense of security and stability that is hard to find elsewhere.”
