You might see your home as an investment which you can sell anytime it pleases you or if in case you need the money for something else. But should you really sell your house? There are benefits of being a homeowner. Here are just some of those benefits that you might want to consider.
Being a Homeowner Build Your Wealth
You might only see homeownership as an added expense right now. But owning a real estate property in states like Louisiana can actually build your wealth as years go by. Although there had been some real estate issues for the past decade, home ownership can still be considered as a great investment. However, just make sure that you only purchase a house that is within your budget. Sticking to a house that you can actually afford can build your wealth over time.
You can Build Your Equity Every Month
The equity that you build in your house is the amount of money that you can get if you sell it minus the amount that you still owe on it. So each month that you pay your mortgage on time, a portion of that gets applied to your principal balance which then reduces the amount that you currently owe the lender. Doing so actually increases your equity each month.
You’re Eligible for Mortgage Tax Deduction
Mortgage deduction allows the homeowners to subtract the house loan interest from the tax that they are obliged to pay. This is a huge saving for a lot of people, especially to those who are trying to save money. This is a great thing since interest payments comprise the biggest part of your mortgage payments every month in the early parts of your mortgage term.
Real estate property taxes that are paid on both your vacation home and the primary residences located in New Orleans are actually fully deductible for your income tax.
You’re Eligible to be excluded from Capital Gains
Only homeowners who have lived in their primary residence for more than two years are eligible to get capital gains exclusion. If you purchase your house before 2003, there’s a huge chance that the value of your house has increased and, therefore, the tax benefit will be very beneficial.
Mortgage is Almost like Your Savings
Since you are building up your equity by paying your mortgage payment on time, you may see it as a forced savings account. If you pay your mortgage every month, this reduces the principal amount of your loan, which therefore increase your equity.
Cheaper than Renting
Renting a place may be a good idea if you’re not really planning to stay on the same place for years. However, owning a house is a lot cheaper over time. This is because having a house builds your wealth while renting only builds the owner’s wealth.<< Back to the list.
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Primary Residential Mortgage, Inc.
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