10 Financial Benefits to Taxpayers of Homeownership
In a previous post we laid out the basic arguments regarding whether or not there are societal benefits to homeownership vs renting. Now we take a look at the financial benefits to the individual taxpayer of owning vs renting. This will be a brief overview. In a future post we will dig down into a full and detailed financial analysis.
Unlike a list of social benefits which one could argue that the government might have a reason to subsidize, these benefits are those that the homeowner themselves get from purchasing. It is part of the equation they would consider in making a purchase rather than remaining a renter. It is certainly reasonable that this class of taxpayers and voters would "vote their pocketbook" to their advantage.
Top Ten Financial Benefits of Homeownership
1. Provides an asset
2. Stabilizes monthly payment
3. Control your own destiny
4. Forced savings
5. Equity available for other purposes
6. Potential gain in market value
7. Can add to value through improvements
8. Establishes credit
9. Allows for long term furnishing purchases
10. Mortgage Interest and property tax deductions
Clearly, these advantages don't depend on the mortgage interest deduction. It serves as an incentive, and one can make the argument that it lowers the cost of ownership, providing the owner with the ability to own more house than they could without the deduction.
Should homeowners vote their personal wallets? Many others choose their leaders and vote on issues that work to the advantage of a group they are part of. Or should Americans be more interested in voting for leaders and issues that are best for the country.
- Shocking Unintended Consequences if Mortgage interest Deduction is Eliminated
- Schedule A Cap Another Way to Increase Tax Revenue Through Tax on the Rich
- Government and Mortgage Holders Fight Over $100 Billion Per Year Tax Advantage
- Options to Change or Replace Mortgage Interest Deduction
- President Obama News Conference: Tax Increase Still On for Rich to Fix Fiscal Cliff
- More on the Fiscal Cliff and Your Mortgage Interest Deduction - Diana Olick of CNBC
- 9 Reasons to Eliminate the Home Mortgage Interest Tax Deduction
- 7 Social Benefits of Home Ownership and 6 Social Benefits of Renting