Unlike all other capital investments, the
home satisfies one of our basic needs for shelter. Shelter means
more than keeping us secure from the natural elements. It also
assures us the right of privace which guarantees our individual freedom.
The old saying that equates a home to a castle is quite accurate in that
homeownership allows us to live our lives according to the preferences of
our own lifestyle.
Pride of Ownership
The free enterprise system is one that
rewards success. Traditionally, a home is one of the most
significant signs of success. The obvious pride that one feels in
owning a home is one of the great emotional and psychological rewards for
attaining some degree of success in our society. This feeling of
pride is continually nurtured as some home owners upgrade the quality of
homes they own.
Despite many changes in the Internal Revenue
Service tax laws, home ownership continues to provide unique tax
advantages for ownership of a primary residence and a second home.
Mortgage interest and property taxes are allowed to be deducted from
regular income before tax computations on a primary residence.
Ownership of a second home provides these same tax advantages plus
depreciation allowances if the property is rented to a third party.
investments, when you make a return only on the amount of money invested,
home ownership allows you the opportunity to obtain a return on both
invested and borrowed money. This technique, know as leverage,
provides a unique method for every homeowner to enhance this or her net
Source: Tom Ervin