Owning a home is the core of the American Dream. Ultimately, having a place that we call our own makes us happy. Isn’t home ownership what our forefathers meant when they wrote in the constitution that we have the right to life, liberty, and the pursuit of happiness porta john rental.
It’s true! Buying a house can result in tax advantages unknown to renters. But even more, owning a home is part of our American heritage.
I know that it’s not always possible to buy a home for many reasons. But when the time is right buying a house creates many financial advantages that you cannot afford to overlook. I know. It has been my pleasure and privilege to help hundreds and hundreds of renters become home owners.
Renters, I guess could consider depending on the landlord to fix the water heater a slight advantage. But if you have been a renter, you know that relying on your landlord when the plumbing leaks or the heating and air conditioning goes out is never a pleasant experience.
The first and most obvious disadvantage to renting is that you lose the opportunity to create equity. When you pay rent what do you get in return? Well, of course, you get a roof over your head and a place to sleep but where does the money go? It goes into the pocket of the landlord. The landlord then uses it to pay the mortgage and over time he reaps the advantage of equity appreciation.
Instead of benefiting the landlord why not take advantage of building your own equity by buying a house instead of renting. Over time, the house increases in value and instead of paying the landlord who gets the benefit of creating equity, you enjoy that benefit.
Even though some renters would love to be home owners and leave the world of renting behind, they are not sure they can afford a mortgage payment. But Congress is helping out with this.
Although the mortgage payment is often higher than renting the US Government wants you to own a home. So it allows you to write off a percentage of your mortgage interest payments when you file your yearly tax return. This significantly reduces your real cost of home ownership.
In addition you also have the opportunity to take your property taxes as a deduction against your income reducing your tax burden. Other deductions may also be available. I suggest you consult an accountant if you want more details.
Another disadvantage to renting is that rents continue to rise and they always will. You can count on that.
Owning a home is the best way to protect against rent increases. Then as your income grows you can plan for your future knowing that your house payment will remain steady. This benefit may seem small but eliminating the fear of rising home costs over a long period of time helps give many families the security to plan well for the future.
Another disadvantage to renting is the inability to freely decorate and landscape your home. Even if the landlord allows you to decorate, you are unlikely to create a style that truly reflects you. After all who wants to spend money to improve an investment belonging to someone else.
Owning a house of your own allows you to make it a home. You can paint inside and out with colors that you want. You can make improvements the way you like. You can plant the palm tree you always wanted. You can feel comfortable knowing your house is a reflection of your personality and style. We often call this pride of ownership and it’s what America is all about at its core.
That is because buying a home, building equity, establishing financial security for our families, and expressing that in our communities makes us all better citizens.
Ultimately, having a place that we call our own is part of the American Dream. It makes us happy and isn’t that what our forefathers meant when they wrote in the constitution that we have the right to life, liberty, and the pursuit of happiness.