Being a homeowner is something to be proud of, especially when the pursuit of
homeownership is a dream that becomes a reality. This month is National
Homeownership Month, which is a good reason to celebrate the advantages of
being a homeowner. Here are the reasons why homeownership is so beneficial:
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Wealth Builder. A home is one of the best investments you can make, and
it is one of the leading ways to build wealth. The main ways you can build
equity in your home are by paying down the principal of your mortgage loan,
through the appreciation of your home, and by making home improvements. As long
as you’re building equity in your home, your wealth will continue to
accumulate.
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Tax benefits. As a homeowner, you may deduct mortgage interest and
property taxes as an expense against income. You are entitled to capital gains
exclusion on the sale of your home, as long as you have lived in your home for
two of the past five years.
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$8,000 Homebuyer Tax Credit. This tax credit is available to first-time
homebuyers up until December 1, 2009. It does not require repayment, and if any
credit amount remains unused, it will be refunded as a check. Just recently,
the Federal Housing Administration gave authorization to use the $8,000 tax
credit as a down payment.
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Societal Advantages. Homeownership builds social networks, strengthens
neighborhoods, and fosters a sense of community. It encourages involvement in
community efforts and working towards shared goals.
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Economic Stabilization. Homebuyers and homeowners contribute to
bolstering the housing market, and a stable housing market is fundamental to
stabilizing the economy.
The benefits of homeownership are many and owning a home paves the way for
future financial rewards.
