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Top Reasons to Buy a Home Versus Rent

Now more than ever, home ownership is within reach of millions of Americans and the benefits of buying a home versus renting are evident.  Historically low interest rates and falling home prices have created a unique situation for renters who may have considered buying a home.

Tax Considerations:

Most homeowners choose to itemize deductions on their income taxes which allows them to deduct home mortgage interest, property taxes, state income taxes, gifts to charity, medical and dental expenses over 7.5% of your income, personal property taxes, and even some moving expenses.

Building Long Term Equity:

No conversation on buying a home versus renting is complete without a discussion on the unique ability to build wealth that homeownership brings to the table.  As you make your monthly payments each month and effectively reduce the principle balance on your loan, the value of your home is appreciating as well.  Appreciation rates differ from city to city so be sure to consult a local Realtor for an accurate assessment of your town.

One item most renters take into consideration is how long they plan to live in a particular area as mobility is certainly a factor.  Recently, real estate giant Zillow.com  determined that homeownership is more affordable than renting after just three years in most of the 7,500 U.S. cities analyzed. The financial benefits of owning outweigh those of renting even sooner in markets that saw drastic price declines during the recession — such as Miami and Tampa, where the “breakeven horizon” is 1.6 years.

With interest rates at historic lows and average prices in most metro areas haven fallen over the last several years, there has never been a better time to take advantage and buy a home.

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