- Savings Plan. Look at it as a built-in savings plan. You build equity in your home the longer you own it. You can generally take up to $250,000 (or $500,000 if married filing together) as a capital gain without owing any income tax once you sell.
- Equity. Your rent payment is money that goes to a property owner. Your home loan payment builds equity and puts money in your pocket. There’s no guarantee that your home will appreciate, but historically, real estate appreciates vs. other purchased assets.
- Tax Incentive. Generally you can deduct the interest paid on your home loan each year together with some of the costs to initially buy your home.
- Independence. Your home belongs to you. You don’t have to check with the landlord if you want to paint the walls, change the carpet, or anything else.
- Stability. Being in a neighborhood and community for several years allows you to feel established. You can create long-term friendships, become involved in community groups, and your children benefit from the local educational system.
Updated by Doretta Smith,