Top Reasons to Buy a Home

Buying a homeBuying a home is the most prideful decision for most of the home buyers and it may be the largest financial decision of your life. If you are like most of the other home buyers, then you probably have listened your friends, family and coworkers encouraging you to buy a home.  You may wonder and would be thinking that buying a home is the right decision for you. The less scary the entire process will appear to you if you know more why you should be buying a home.

If you are currently rent an apartment, monthly rent payments, down payment, noisy neighbors and apathetic lenders are the things you should bother about. Buying your own home not only you avoid all the worries of monthly payments, but also save your money in the form of tax reduction by investing in your home. Having more independence and freedom in decision-making adds to your quality of life as a homeowner. When you buy your own home, you enjoy more tranquility and personal space.

If you need convincing, here are reasons why you should buy your home.

Gain more personal space

Buying a home is creating more space for you and for your family. When you live in apartment it is hard to settle down and avoid the arguments from next door or loud music blasting from downstairs.  Having your own home is the most important element of your peaceful life. You can escape the noise and claustrophobia of apartment living and enjoy the peace and quiet of your own personal space when you own your own home.

Buying a home gives you independence

Do you wait for your landlord for fixing the leaky plumbing or faulty electricity? You become the proprietor and gain control of the maintenance of your home when you buy your own home.You can be in charge of all the decision-making needed for the upkeep of your home, and can take pride in the ownership of your property.

Pride of Ownership

Owing a home is the number one reason why people yearn to own their home. Buying a home means you can apply any color on wall, turn up the CD player, attach permanent fixture and decorate your home according to your requirement. Buying a home owner gives you and your family a sense of stability and security. It’s making an investment in your future.


Although real estate market moves in different cycles, sometimes it is up and sometimes it is down, over the year, real estate industry has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks and records the movement of single family home values across the country.  Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.

Mortgage Interest Deductions

Home ownership is an outstanding tax shelter for investors and tax rate favor homeowners. Mortgage interest is fully deductible on your tax return as long as the mortgage loan balance is less than the price of your home. Interest is the largest component of your mortgage payment.

Property Tax Deductions

Tax information for the first time homo buyers are mentioned in IRS publication 530.  Real estate property tax paid on the first time and a vacation home are fully deductible for income tax purposes. In California, the passage of Proposition 13 in 1978 established the amount of assessed value after property changes hands and limited property tax increases to 2% per year or the rate of inflation, whichever is less. 

Capital Gain Exclusion

You can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains, as long as you have lived in your home for two of the past five years. You don’t need to find replacement home or move up. There is no age restriction, and the “over-55” rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit–subject to limitation–free from taxation.

Preferential Tax Treatment

Capital assets receive preferential tax treatment. If you make more profit that allowed upon sale of your home, it will be considered as a capital asset as long as you owned your home for more than one year.

Equity Loans

Homeowners who carry credit balances are unable to deduct the interest paid, which can cost 18% to 22%. Sometimes the interest on equity loan is much less than it is deductible. It makes sense to pay off this kind of debt with a home equity loan for many home buyers. Some states laws restricts home equity loans but in many states home buyers can borrow an equity loans for a variety for reasons like, home improvements, college or starting a new business.