Owning your own home allows you to experience the pride of home ownership. For many same sex couples, the security of owning their own home is an accomplishment that they look forward to once they have established a secure relationship. There are many benefits to owning a home compared to renting.
1. Freedom
When you own your own home, you have the freedom to decorate and make landscape changes, make noise, have pets and allow anyone you would like for a long visit without getting anyone’s permission. Any improvements, e.g., landscape maintenance, that you make to the home will increase its market value.
The exception to this benefit is when you purchase a home in an area that has a home owners association or other organization that makes rules to maintain the value of the homes in the area. Those organizations generally have rules in place related to the type of modifications you can make to the home, noise limits and other restrictions. Before purchasing a home governed by such an organization, you should review their rules to ensure that they do not infringe on anything that you want the freedom to do in or with your new home.
2. Tax Breaks
The United States tax code allows home owners to deduct some of the costs involved in purchasing your home on your first tax return after your purchase. The code also allows you to deduct the amount that you pay in mortgage interest and property taxes every year.
3. Stability
The stability of owning a home allows you to make lasting friends and participate in community activities. If you have children, owning a home allows continuity of their education by not being required to move to different schools when you change rental units. You can also teach your children to save by opening a junior savings account.
Although many people stay in the same rental unit for many years, most people move every few years for reasons including increases in rent or incompatibility with neighbors or the landlord. If you choose a fixed rate home mortgage, the payment amount cannot be increased during the life of the contract. This option offers stability in knowing each month exactly how much your house payment will be each month.
4. Equity
Equity is the difference between the amount owed on your home and its fair market value. Making regular mortgage payments helps you build equity in the home, unlike rental payments that you never get back.
Owning a home can be compared to a savings account. When you sell the home, you will be paid the funds left after payment of prorated items such as property taxes, real estate agent fees and the balance of your mortgage. The money that you will receive is called capital gains. The federal government allows an exemption, as of 2014, of $250,000 for a single person and $500,000 for a married couple. If your capital gain falls below that amount, you will not be required to pay federal taxes on the money that you realize from the sale of your home. There are requirements that must be met in order qualify for the exclusion, including that you must have lived in the home for at least two years out of the previous five years.
If you are ready to purchase your own home, it would be in your best interest to hire an LGBT real estate agent at GayRealEstate.com to assist you with the process… it’s free. He or she will be up to date on the real estate laws that affect same sex couples and will protect your interests throughout the process.