The 7 Financial Benefits of Home Ownership
Our recent article on the benefits of home ownership will help you decide if you want to own a home. Forbes magazine has outlined the financial benefits of Home ownership, they are as follows.
The 7 Benefits Of Home Ownership
1. Home Ownership Builds Wealth Over Time: According to Forbes home ownership is a savvy financial move, but only if people purchase homes that they can afford. No Deposit First Homes can help you with your financial situation by seeing if you apply for the First Home Owners Grant, making it easier to have a new home that you can afford.
2. You build Equity Every Month: This means that the reduction of your mortgage every month increases your equity.
3. You Reap Mortgage Tax Deduction Benefits: This comes through 1. Mortage Reduction – meaning that tax codes allow home owners to deduct the mortgage interests from their tax obligations. 2. Some Closing Cost Deductions – The first year you buy your home, you are able to claim the points (also called origination fees) on your loan, no matter whether they are paid by you or the seller. 3. Property Tax is Deductible – Real estate property taxes paid on your primary residence and a vacation home are fully deductible for income tax purposes.
4. Tax Deductions on Home Equity Lines: In addition to your mortgage interest, you can deduct the interest you pay on a home equity loan (or line of credit)
5. Capital Gains Exclusions: If you buy a home to live in as your primary residence for more than two years then you will qualify. When you sell, you can keep profits up to $250,000 if you are single, or $500,000 if you are married, and not owe any capital gains taxes.
6. A mortgage is like a Forced Savings Plan: Paying that mortgage every month and reducing the amount of your principal is like a forced savings plan.
7. Long Term Buying is Cheaper than Renting: In the first few years, it may be cheaper to rent. But over time, as the interest portion of your mortgage payment decreases, the interest that you pay will eventually be lower than the rent you would have been paying.
What Can We Do For You?
Let the team at No Deposit First Homes help you begin the journey to owning your own home. No Deposit First Homes utilises the First Home Owners Grant, this grant offers a payment of up to $20,000.00. Using this No Deposit First Homes helps you plan and build your first home! Find us on Facebook and let us know how we can help you!