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Seven Reasons to Own a Home of Your Own in Monterey County
- Tax breaks. The United States Tax Code will let you subtract the interest amount paid on your loan, property taxes and some your other home owner costs.
- Gains. Between 1998 and 2002, national home prices increased at an average of 5.4 percent annually. While gains have been erratic (or price drops have taken place in some areas), if you get a good price now and stay in your home long term, future appreciation is likely.
- Build Equity. If you pay rent then this is money that you will never see again, but house payments let you build equity ownership interest in your home.
- Savings. You home is your piggy bank as you build equity. .If you sell, you can generally take up to $250,000 ($500,000 for a married couple) as capital gains and not owe any federal income tax.
- Predictability. With a 30 year loan your payments stay the same. Rents keep increasing so your housing costs may effectively get lower as they years go by. In California your property taxes can only go up in small amounts. But your insurance costs can increase.
- Freedom. You own your "castle" . You can paint the walls any color you like, decorate in any fashion you desire.
- Stability. The landlord can not suddenly give you notice to move. You can stay in the same neighborhood for years. This makes it easy to participate in community activities. Ownerships makes it easier establish longer lasting relationships. Your kids can stay in the same school. This can make it easier for them to learn and do well in school.
Try this Rent vs Buy Calculator by Ginnie Mae
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