Why Buy a Home?

It is the goal of every individual to own a place one can call home. As a first-time home buyer, you’ll probably be encouraged by family and friends to buy a home. If you are short of cash, you can look into first home buyers Grant.
These are the eight good reasons which will probably convince you to buy a home:
1. Pride of ownership is the primary reason why people desire to possess their own homes. Owning a home spells freedom, stability and security for you and your family; it also serves as a future investment.
2. For most people, investing in a home is a barrier against inflation. Although value of real estate goes up and down over the years but it is constantly appreciating.
3. Home ownership is a superb tax shield and tax rates seem always to be favorable to homeowners. If you can keep your mortgage balance smaller than the price of your home, your mortgage interest will be fully deductible from your tax return.
4. The real estate property taxes you have paid for a first home and a vacation home are fully deductible for income tax purposes.
5. As long as you have lived in your home for two of the past five years, you will be excluded from paying capital gains. There is no age restriction, and the “over-55″ rule does not apply; which means you could sell your house every two years and pocket your profit–subject to limitation–free from taxation.
6. When you sell your house and you receive more profit than the allowable exclusion, that profit will be considered a capital asset as long as you owned your home for more than one year.
7. Part of your monthly payment applicable to the principal balance of your loan reduces your obligation. It is lowest on your first payment and highest on your last payment.
8. Equity loans interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with equity.
For all these good reasons, you should buy a home. If you have no cash, you can look into the possibility of a first home buyer’s grant.