7 Reasons to Own Your Own Lake Home
- Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your
mortgage, property taxes you pay, and some of the costs involved in buying
your home.
- Gains. Between 1998 and 2002, national home prices increased at an
average of 5.4 percent annually. And while there’s no guarantee of
appreciation, a 2001 study by the NATIONAL ASSOCIATION OF REALTORS® found
that a typical homeowner has approximately $50,000 of unrealized gain in
a home.
- 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 mortgage payments don’t go up over
the years so your housing costs may actually decline as you own the home longer.
However, keep in mind that property taxes and insurance costs will rise.
- Freedom.
The home is yours. You can decorate any way you want and be able to benefit
from your investment for as long as you own the home.
- Stability. Remaining
in one neighborhood for several years gives you a chance to participate
in community activities, lets you and your family establish
lasting friendships, and offers your children the benefit of educational
continuity.
To calculate whether renting or buying is the best financial option for you,
use this calculator
courtesy of Ginnie Mae:
Go back to buying lake property
Reprinted from REALTOR® Magazine
Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved.
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