Tax Advantages of Home Ownership - Your home provides many tax benefits. Here are some of the benefits of being a home owner.All yearly interest is tax deductible. Including any points paid for financing.
You can deduct the total amount of your yearly property tax bill.
Home values have sustained growth through the years. Historically there has been no better financial investment than home ownership. It is the best hedge against inflation because real estate is the world's only commodity in absoulutely limited supply. Population growth steadily increases demand, thus the increasing value of real estate over time has been constant.
You can also use your homes equity to your advantage by consolidating debt, purchasing big ticket items with a 2nd mortgage or HELOC at comparable interest rates, lower payments and you are able to deduct the interest from these mortgages as long as the loans do not exceed 100% of your homes value.
In addition to tax advantages you can greatly benefit from your home's appreciation. A general rule of thumb is about 4 - 5% per year on average. If you bought a home that is worth $100,000 then at the end of one years time it could be worth:
1st year = $105,000
2nd year = $110,250
3rd year = $115,762
and so on...
