| Deciding between renting or buying a residence can be | | | | up to $500,000 of earnings from the their capital gains. |
| a difficult decision for one to make. There are benefits | | | | This also equates to lower taxes for homeowners. |
| for both options, depending on what stage of your life | | | | Real estate also has a trend to appreciate in value |
| you are currently in. In general, the benefits of | | | | over the years. Unlike a car, whose value decreases |
| purchasing a home -- economic, mental, and emotional | | | | with the passing of time, the worth of your real estate |
| -- greatly outweigh those of renting. Renting provides | | | | should go up in a constant manner (despite certain dips |
| residents with the flexibility to move whenever | | | | in the real estate market). |
| necessary and can also provide the tenants with | | | | Finally, each time you make a payment on your home, |
| lower monthly payments than buying. Despite this, the | | | | you reduce your mortgage by a certain amount. This |
| benefits of buying a house tend to greatly outweigh | | | | means that with every payment, you increase your |
| those of renting. | | | | equity. Now that you have home equity, you can also |
| Economic Benefits | | | | take out a home equity loan to pay for other |
| The first thing to consider about purchasing a house is | | | | necessities, such as education or medical bills. |
| the potential to reap many economic benefits with this | | | | Emotional/Mental Benefits |
| investment. A homeowner will profit from several tax | | | | When you purchase a home, you gain the ability to |
| incentives, such as property tax and mortgage interest | | | | proudly announce that you have a place of your own. |
| deductions. First-time home purchasers will see that | | | | You can do anything you want with your house -- |
| their real estate property taxes are fully deductable, | | | | design it as you feel fit, decorate it as you please, and |
| and those with a mortgage balance that is lower than | | | | landscape the outside however you want. You also |
| the home's worth will benefit from a fully deductable | | | | have collateral to do things such as take out a home |
| mortgage interest. | | | | equity loan, meaning that you have more of a sense |
| For homeowners who have resided in their houses for | | | | of financial security. This helps build confidence in your |
| at least two out of the past five years, there is a | | | | financial standing and ability to support your family, if |
| capital gain exclusion law that allows them to exclude | | | | you have one. |