Do you still think it is cheaper to go on your own merry way and rent quarters rather than own your own home? You’re not alone. Many people believe that owning a home is more expensive than renting. On the surface that may seem true. But does a person who rents benefit from:
- Tax Savings?
- Increasing equity?
- Increases in home value due to inflation?
Say you bought a home three years ago for $100,000. If it increased in value at 6% per year, the same house would be worth $120,247 today. Confess — are you currently saving $20,247 every three years?
Also, there is no disputing that home ownership is the best tax break there is. You don’t need a crystal ball. In Congress, the one presently untouchable tax principle seems to be that the homeowner gets the tax deduction for mortgage interest paid. In the early years of the mortgage, well over 90% of the monthly payment may consist of interest. That’s one very big deduction.