There are many rewards to buying a home in New Jersey which can be categorized in the two following main benefits:
- Home ownership improves quality of life
- Home ownership is financially advantageous and the key to building long-term wealth
1. Home ownership improves quality of life
Especially if you have a family and children, you will notice the immediate life improvement that comes from owning your own home. So many things that you could not do previously as a tenant are now becoming possible. Home ownership brings a new sense of freedom and social benefits as well. Your privacy will also most likely greatly increase along with peace and quietness around you. Home ownership gives you and your family a sense of stability and security.Your new home will be the place you really want to come back to at the end of a long day.
2. Home ownership is financially advantageous and the key to building long-term wealth
Home ownership is a superb tax shelter and our tax rates favor homeowners. Mortgage interest is fully deductible on your tax return*. Other tax deductions are also allowed specifically for home owners. This can mean savings of thousand of dollars annually. As you pay off your mortgage, a portion of your payment goes to reducing your loan principal and builds up equity. Unlike renting, you are helping yourself to build your financial future. Because you now own something valuable, you increase your financial options in term of credit. You may qualify for a home equity line of credit, second mortgage or reverse mortgage…Houses historically increase in value over time. The seven year appreciation rate (2001-2008) for New Jersey homeowners is 80.4 percent, more than double the national rate of 37.8 percent.
*Consult your tax advisor for more information