If you still do not have your own home, then probably most of your colleagues, friends and relatives will always try to advise you to buy home.
Some of you may be still wondering whether it is really a good idea to own a home. Buying a home at Seattle will only mean that you start looking for suitable Seattle mortgage company and start the process of looking for suitable home.
Do you think all these are too much for you? Then know the following few reasons why you must really buy your own home.
- Deductions of mortgage interest
You can certainly save lots of money in the form of tax by getting the tax deduction because of your mortgage. Often many people go for buying home only for saving from the overburden of tax.
As long as your balance of mortgage is smaller, as compared to value of your home, your mortgage interest will be fully deductible from your tax return.
- Deductions of property tax
All the property tax that you will pay can be fully deducted from your income tax, which is also a great incentive. If you do not own your home then you have to unnecessarily end up paying higher income tax.
- Equity loans
If you carry various credit card balances that cannot be deducted from the interest paid, that may cost as high as 18 to 22 percent. Often this equity loan interest can be much less and also it is deductible.
It will really make sense for many homeowners, paying off this type of debt by home equity loan.
- Exclusion of capital gain
You may exclude maximum $250,000 as an individual and $500,000 as a married couple out of your profit from your capital gains, if you have already lived in your own home for 2 of the past 5 years.
Also, you can exclude above thresholds from your taxes every 2 years, which means you are able to sell every 2 years and earn your profit.
- Mortgage reduction can build equity
Every month, some part of your payments made every month is applied to principal balance of the loan, and it reduces your obligation.
Your principal portion of the principal amount and interest payment amount will increase slightly every month. On your initial payment, it will be lowest and will be highest on the last payment.
- Preferential tax treatment
In case, you get more profit than your allowable exclusion after selling your home, then your profit will be treated as capital asset, till you owned the home for one year and above.
Capital assets will receive preferential treatment for tax. This will mean if your profit will exceed the exclusion, then taxable portion can be much less.
- Pride of owning home
Pride of owning a home is also one of the very strong reasons for buying home. If you have your own home then you need not ask for permission to paint it in any color that you like.
You can play any kind of music in your own home and decorate it as per your own taste. Your family too will have a sense of security once you have your own home.