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BENEFITS
OF HOME
OWNERSHIP
One
of the great freedoms in our country is the
right to buy, sell, and own private property.
Often referred to as "The American
Dream," a home is usually the largest
financial investment of a lifetime.
Here
are the four main reasons why people are buying
homes in today's market.
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Shelter
Unlike all other capital investments, the
home satisfies one of our basic needs for
shelter. Shelter means more than keeping us
secure from the natural elements. It also
assures us the right to privacy which
guarantees our individual freedom. The old
saying that equates a home to a castle is
quite accurate in that home ownership allows
us to live our lives according to the
preferences of our own lifestyle.
-
Pride
of Ownership
The free enterprise system is one that
rewards success. Traditionally, a home is
one of the most significant signs of
success. The obvious pride that one feels
owning a home is one of the great emotional
and psychological rewards for attaining some
degree of success in our society. This
feeling of pride is continually nurtured as
home owners upgrade the quality of the homes
they own.
-
Tax
Advantages
Despite many changes in the Internal Revenue
Service tax laws, home ownership continues
to provide unique tax advantages for
ownership of a primary residence and a
second home. Mortgage interest and property
taxes are allowed to be deducted from
regular income before tax computations on a
primary residence. Ownership of a second
home provides tax advantages. Consult your
accountant for appropriate tax information.
-
Profit
Potential
Unlike other investments, where you make a
return only on the amount of money invested,
home ownership allows you the opportunity to
obtain a return on both invested and
borrowed money. This technique, known as
leverage, provides a unique method for every
homeowner to enhance his or her net worth.
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