Benefits of Buying a Home
Home values fluctuate over the years, but show a steady increase over time. Statistically home prices have risen constantly in the US and real estate has been a proven investment to build wealth. Most likely home value keep up with the inflation or exceed it to one or two percent (or more depending on the region).
Stable and secure environment
Owning a home means that you and your family can settle in a stable and secure environment.
It will be your own home and you can remodel and renovate the place whenever you want (subject to zoning and building codes), and have the place you always wanted. As long as you abide with Condo and Building rules, you can make your home the place you always wanted to be.
When you are paying rent, that money goes to someone else, without any benefit to you besides the right to live in a space. When you pay into a monthly mortgage for your own home or investment, instead of paying a monthly rent, you are investing into something you will be eventually be yours; you are acquiring an asset and investing in your future or retirement.
In the process of paying back your mortgage you more and more own the home and build equity.
IRS Publication 530 contains tax information home buyers. There are many deductions and benefits that first-time buyers or investors can take advantage of when it comes to property.
In 1978, the passage of Proposition 13 in California established the amount of assessed value after property changes hands and limited property tax increases to 2 % per year or the rate of inflation, whichever is less.
Mortgage interest deduction
A mortgage payment includes the items principal, interest, taxes and insurance (PITI). The largest component of your mortgage payment especially the first years after the purchase is the interests, which is deductible from your taxes.
Capital gain exclusion
If you lived in your house for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains.
For more information about buying a home read here.
Disclaimer: Please consult with a Tax attorney or specialist. Real estate agents cannot give tax advice.