Monday, June 20, 2011

NAHB News - Opportunity Knocks for Home Buyers - Part 2: Benefits for Buyers



Tax Benefits:For Home Owners Only


Unique tax benefits that apply only to housing help lower the cost of homeownership. Both mortgage interest and property taxes are deductible. Moreover, for married couples, profits of up to $500,000 on the sale of a principal residence ($250,000 for single taxpayers) are excluded from tax on capital gains.




The Advantage of Leveraging

Leveraging is another advantage of homeownership. A buyer can purchase a home and receive the full benefit of homeownership with a cash downpayment that is only a fraction of the total purchase price. This is called leveraging, and it makes the rate of return on a home purchase greater than on other purchases with the same value, such as stocks, where the buyer must put up the entire price.

Building Personal Resources

For most Americans, homeownership is a primary source of net worth and an important step in accumulating personal financial assets over the long term. Although property values have declined in many markets, Americans currently have a total of more than $6 trillion in equity in their homes, and for most families, home equity represents the largest share of net worth.

There Really is No Place Like Home

Although there are many positive financial aspects to homeownership, a home cannot be valued in monetary terms alone. Not only can homeownership be a steppingstone to greater financial well-being, it provides a permanent place to call home and great personal satisfaction. Academic research also shows that homeownership provides a wide range of social benefits and strengthens the nation’s people and its communities. Homeownership is truly a cornerstone of the American way of life.



Learn more at www.nahb.org



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