Owning a Home is Still the American Dream
July 2, 2018 | Tom Ashworth
Owning a home is still the American Dream. Here in the Texas Hill Country owning Real Estate is more than a dream, it is a blessing from God. Most people would still like a place of their own. Places that they can raise their family, grow their garden, invite friends over and fell safe. Owning your own Burnet Texas Real Estate creates not only financial benefits, but you will receive an emotional boost as well.
The federal government offers incentives to help you achieve the dream of home ownership. They allow tax deductions for mortgages and property taxes. The exclusion on profits from a home for capital gain tax is very generous.
The social benefit that goes along with home ownership include better physical health, higher test scores for your kids, lower number of teen delinquency, neighborhood stability, better voter turnout and pride in your community.
If you are trying to decide to buy a home, you have to consider if it costs much less to own a home than it does to keep renting. Today you have very low interest rates on mortgages and the payment is usually comparable to rent. The main benefit is you own the home and are building equity in something. When you pay rent all the money is lost. The decision to buy is more obvious when the other benefits are considered like amortization, appreciation and tax savings.
When we talk income we usually talk about gross and net. Gross is what you make total and net is what you actually get after all the deductions. Same is true on home ownership. The actual net cost of owning a home is sometime half of what the monthly payment is.
In most cases, it is significantly cost more to rent than to own which could amount to more than the down payment in the first year alone. Use Yahoo’s Rent vs. Own Calculator to calculate your cost of Renting vs. Owning.