There’s no place like home, and owning that home remains a high priority among the general population. But, in this day of tight mortgage approval standards and anemic property values, why would the Average Jane and Joe rather own the roof over their heads? The reasons really aren’t that surprising; in fact, most are as old as the concept of home ownership itself…
Control. Except for items mandated by neighborhood CC&Rs and local historic preservation codes, homeowners control the color of the house, the layout of the landscape, and whether the garage will store tools and cars or become an exercise room or pool hall.
Investment. Most people would rather invest in themselves than a landlord. A house is the largest purchase most of us will ever make. Over time, it becomes one of the largest pieces of our portfolio. With some love and care, a home can be passed on for generations.
Pride. There is pride that comes with being a homeowner. When we maintain a safe, comfortable place for our families, we have pride in ourselves for living up to our responsibility, as parent and as spouse, and as a contributing member of our community.
Tax shelter. One of the largest tax write-offs afforded to U.S. taxpayers is that for mortgage interest. Property taxes are also deductible. While improvements and repairs are not deductible for a primary residence, these costs factor into your bottom line basis when you sell the house. And more basis equals less in capital gains taxes!
