preparing for home ownership
The Advantages of Homeownership
For many of us, homeownership is a sign of success - that we've finally achieved the American dream. Homeownership also offers benefits of its own. Which of these is an advantage of buying a home?
You receive an immediate financial return on your investment.
You qualify for a major break on your federal tax return.
You no longer have to worry about paying rent.
"B" is correct, because the IRS generally allows homeowners to deduct part of their mortgage interest and real estate taxes each year. That said, your mortgage payment is likely to cost as much or more as you currently pay in rent. You probably won't see a return on your investment until you've paid into it long enough to build up equity. This could take several years.