Your Home - Your Castle
July 10, 2007
More than any other reason, the value of owning a home has most to do with putting down roots and providing the setting for the small and large pleasures of life. After a period of zooming home prices, the media is full of articles about buying a home as an investment. It is true that over time, a well maintained home does gain in value. This appreciation is a great when it occurs, but for many a buyer, the amenities and location of the property purchased become the deciding factor - not how much will it appreciate.
The purchase of real estate has some distinct advantages over the purchase of other assets. First, it is a leveraged purchase - meaning you can use others' money(Lenders) to buy a home. If you put 20% down and the real estate rises by 5% in value, your return could be 25% on that down payment.
Second, the government gives home owners some serious tax advantages. Interest paid on the mortgage is tax deductible. Capital gains are forgiven up to $500,000 for a couple or $250,000 for a single person.
And thirdly, as I began this blog, your home is your castle! You can live in it, decorate it and create your own unique life style. No other investment gives this kind of return.
More than any other reason, the value of owning a home has most to do with putting down roots and providing the setting for the small and large pleasures of life. After a period of zooming home prices, the media is full of articles about buying a home as an investment. It is true that over time, a well maintained home does gain in value. This appreciation is a great when it occurs, but for many a buyer, the amenities and location of the property purchased become the deciding factor - not how much will it appreciate.
The purchase of real estate has some distinct advantages over the purchase of other assets. First, it is a leveraged purchase - meaning you can use others' money(Lenders) to buy a home. If you put 20% down and the real estate rises by 5% in value, your return could be 25% on that down payment.
Second, the government gives home owners some serious tax advantages. Interest paid on the mortgage is tax deductible. Capital gains are forgiven up to $500,000 for a couple or $250,000 for a single person.
And thirdly, as I began this blog, your home is your castle! You can live in it, decorate it and create your own unique life style. No other investment gives this kind of return.
posted by shirley harry at 8:31 AM
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