This article is designed to highlight some of the many benefits of home ownership and how buying a home can often turn the American and Canadian dream into a reality.
One of the most profitable markets in real estate is rentals, which means that many families are paying to live in a home that isn't their own. In some cases, renting a home is necessary. For all others, the money that would be spent on rent could instead be used to pay a mortgage. In fact, monthly rent payments often exceed that of a typical mortgage payment. One of the greatest benefits of home ownership is putting money into something that you can call your own and knowing that the monthly payments are going toward your home's equity.
Speaking of equity, many properties experience a growth in value as more development moves into the area or the economy strengthens through an increase in job opportunities. If this happens, home values soar and owners can bask in the glory of their new found profit. When you purchase a new car, it depreciates the moment that you drive off of the lot. When you buy a home, however, it has the potential to appreciate year after year. There are few things in life that can offer you a return above and beyond your original purchase price, but a home can.
When you own a home, you will enjoy the freedom of decorating and making any changes that you choose without needing the permission of a landlord or property owner. In addition, you may even be able to use your home's equity to finance some needed improvements and/or repairs. In some cases, these changes may even increase the value of your home. An upgraded kitchen or bathroom, hardwood flooring or an additional room are examples of changes that could result in added value.
Another advantage of home ownership is the tax benefits that are available. In the United States, the interest paid on a home mortgage as well as most property taxes paid are tax deductible. For additional information on deducting mortgage interest and property tax, consult the IRS or a tax professional. In Canada, there are also some tax benefits of home ownership. There is a first-time home buyers tax credit; medical expense tax credit; tax benefits that may apply when selling your home; provincial tax credits you can claim on your tax return; a home buyers plan; rental income and allowable expenses and the GST/HST rebate for new residential rental property; home expenses you can claim and how the harmonized sales tax (HST) will affect new home sales in Ontario and British Columbia. For additional information on these tax benefits, go to http://www.cra-arc.gc.ca/myhome/ or consult a tax professional.
In addition to providing yourself and your family with a feeling of stability and permanence, home ownership can also help strengthen your credit profile through timely mortgage payments and a steady financial history.
Finally, there is no better investment than owning your own home which will lead to a secure future for you and your family.
If you would like more information on how to achieve your home buying dreams, visit me at www.valeriemcconville.com or call me direct at (780) 700-8638 and let's get started!
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