Tax breaks.
The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the closing costs involved in buying your home.
Appreciation
Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
Equity
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
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.
Predictability
Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. Keep in mind that property taxes and insurance costs will increase.
Freedom
The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home. You also have the option to create an outdoor living space.
Stability.
Remaining in one neighborhood for several years gives you a chance to participate in Maple Grove community activities. You and your family can establish lasting friendships, and it offers your children the benefit of educational continuity.
Karen Pelkey
REALTOR® Keller Williams Classic Realty Northwest
612-414-2888
If you are looking to buy or sell in the Minneapolis Metro, let me be your expert!
Online resources: To calculate whether buying In Maple Grove is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.
