The US Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home.
Investment gains
Regardless of short-term ups and downs in the housing market, housing is historically a solid long-term investment. Housing wealth accounts for 36 percent of the nation’s tangible assets.
Equity
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
Savings
Building equity in your home is a ready-made savings plan when you leave the equity in your home. And when you sell, you can generally take up to $250,000 per person as gain without owing any federal income tax.
Predictability
Unlike rent, fixed rate mortgage payments don’t go up over the years so your relative housing costs may actually decline the longer you own your home. However, keep in mind that property taxes and insurance costs will rise.
Freedom
The home is yours. You can decorate and remodel any way you want and be able to benefit from your investment for as long as you own the home.
