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You're
thinking about buying a home. There are a number of advantages to
home ownership. When you're weighing your options and evaluating
your readiness, think about the rewards of homeownership.
Real estate historically is an
excellent investment. You can look forward to federal and state
income tax deductions for property taxes and mortgage interest.
You'll be building equity.
Even though the majority of your mortgage payment goes to interest
initially, the remainder is applied to the principal. Your equity
in the property becomes significant over time.
The chances are good that your
property will appreciate. 'They ain't makin' any more of it' is a
Will Rogers quote often said of land. If all goes well, your
property will eventually be worth more than you paid for it.
You can dip into your equity
by refinancing for a greater amount of money or, where available,
get a home equity loan. These funds will not be taxable and in
most cases, are tax deductible. In this way too, you can work
around the fact that real estate is an non-liquid investment.
Real estate is a good hedge
against inflation. There are no guarantees of course, but in time
of growth, real estate appreciation often outpaces the rate of
inflation.
Talk
to your Realtor and your lender to weigh your readiness to become
a homeowner and take advantage of the rewards of homeownership.
Copyright 2002 PropertySource
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