1: Build Wealth
Throughout history acquisition of property has been a financially savvy move, this is still true today. Normally home values increase making now the best time to buy before prices continue to further increase.
Equity is your profit; it’s the difference between the Market Value & the Mortgage Debt you on the home. Equity = Market Value – Mortgage Debt
Benefits of Equity:
To avoid this tax on the sale of a home you just need to buy the home & live in it for 2 years. When you sell the property you can keep the profits of up to $250,000 if you’re single & $500,000 if you’re married.
2: Tax Benefits
Mortgage Interest: You can write off 100% of the entire Interest portion of your mortgage payment which consists of Principal & Interest. In the beginning almost the entirety of your payment goes towards the Interest portion on a sliding scale till the loan is paid off.
Property Taxes: You can write off 100% of the property taxes.
PMI or MIP is tax deductible but only if you’re single and your income is below $50,000 or if you’re married and your income is below $100,000
If you own a 2-4 family property you can additionally write off the following as well:
Discount Points: Money paid to lower the interest rate is tax deductible
You can tailor fit the home to meet the needs of you and your family, the upgrades will likely increase the value of your home as well.
Homeowners' Children vs. Renters's Children
(habitat for humanity nyc "benefits of homeownership")
4: Buying is Better than Renting:
Over time the principal and interest portion of your mortgage payment will be paid off. This portion of your mortgage payment will obviously be lower than the rent you would have been paying with no end in sight. More importantly, you are not throwing away all that money on rent. You got to live somewhere, so instead of paying off your landlord’s home just pay off your own!