Homeowners can deduct property taxes and mortgage interest paid on their mortgages which reduces the amount of taxes a homeowner has to pay compared to a renter with similar income.
One of the perks of owning your own home is theability to do what you want with it ---remodel thekitchen to your taste, add on another level, open upwalls, etc. You are your own “landlord” when choosingto become a homeowner versus a home renter.
Build equity and value
Property values will typically rise over time, especially in Chicago, thereby increasing your assets. The value increase will give you the option to refinance or take out a home equity line of credit (HELOC) in the future if you wish to use that money for purchasing another property or paying for a remodel.
Fixed monthly payments
As a homeowner, you have the option to fix yourmonthly payments for up to 30 years. The payment willnot change for the life of the loan. As opposed torenting, where your payments can fluctuate year afteryear depending on the market and annual rentalincreases.
Tax free on capital gains
When it’s time to sell your home and make a profit, youcan avoid paying taxes on the amount you gain up to$250,000 (as a single taxpayer) or up to $500,000 (if youare married and filing together)
Improve your credit
Credit scores and ratings typically improve when youtake on debt and make consistentpayments especially for large items such as homemortgages. As your credit score rises, you fill find thatthe approval process to qualify for a future loan or lineof credit will become much easier than for someonewith a limited credit history.
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