Steczo15
Joined: 01 Nov 2008
Posts: 1
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| Posted: Sat Nov 01, 2008 8:58 am Post subject: Enormous advantage |
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One of the primary benefits of home ownership is starting to build some equity. Rather than throwing your rent money away each month you can rest at ease that your payments are going towards the actual ownership of the property. So if you decide to purchase a home your monthly payments will actually go toward something rather than to the owner of a house you could rent instead. Another major benefit of owning your own home is being able to deduct your monthly payments on your tax returns. Usually, initially the majority of your monthly payments are going towards the interest on your mortgage. This means that when it comes to filing taxes, those monthly payments can be deducted resulting in a much higher tax refund! And actually receiving a tax refund is always good news. Not only can you deduct your mortgage interest payments, but you can also deduct those property taxes that you have to pay as well.
The stakes are enormously high for home-owners, should their finances dwindle. When they can't pay the loan installments, the lender has great leverage and the house with all the equity invested in it, could be in jeopardy. The same is true of course even if a tenant can't pay the rent but the financial devastation that comes with losing your home is far greater than being evicted from your apartment. In addition, there are several legal clauses which favour the tenants over the landlords so it is not that easy too evict them either. On the other hand the banks are not as lenient or supportive when it you miss on an installment.
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