If you are weighing the sides about continuing to rent, purchasing a home or selling your home to rent, please read Myrl Jeffcoat's post on this subject. She gives very good things to think about. Thank you Myrl!
It isn't unusual for folks to ponder the benefits that can come from Home Ownership. Here are a few things to consider:
(1) Predictability. Unlike rent, your mortgage payments don't go up over the years so your housing costs may actually decline, as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.
(2) Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home.
(3) Equity. Money paid for rent is money that you'll never see again, but mortgage payments can provide a way to build an equity ownership interest in your home.
(4) Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
(5) Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
(6) Stability. Remaining in one neighborhood for several years, gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
To calculate whether renting or buying is the best financial option for you, use the link below to access calculator courtesy of Ginnie-Mae.
Related Links: http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH
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Doug Durren and Gloria Todor, Realtors®, SRES®
CENTURY 21 Absolute Realty
512 Baltimore Pike, Springfield, PA 19064
Serving Delaware County, Pennsylvania and Surrounding Areas
Doug 610-909-0687 Gloria 484-431-3686
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GloriaTodor@Century21.com
Monthly Area Stats for Sold Houses Posted By the 15th of Each Month
Thanks for the post, have you seen the TIME magazine cover today? OUCH!
Doreen, No I will have to take a look. From your comment it does not sound good. Thanks for the heads up.
Gloria
This really is a great well written post. Excellent choice to re-blog.
Thanks Ellie. Myrl has a way with words for sure. Thanks for stopping by.
Gloria