Buyer's Guide - Doing Your Homework

Home Ownership Pays
No question about it, home ownership is a big investment, maybe the largest you'll ever make. But over time, it's an investment that pays for itself many times over. Here's how:

Tax Advantages
• Mortgage interest is tax deductible.
• Real estate taxes are tax deductible.
• Local tax benefits are available in many areas.
• You can enjoy tax-free gains up to $500,000 from the sale of a primary residence that you have occupied for two of the last five years if you are married and filing jointly. If you are single or married and filing separately, you can enjoy tax-free gains up to $250,000. Moreover, you can use the exclusion as often as you meet the qualifications.

Investment Benefits
• You build equity over time, which you take out in cash when you sell your home.
• The profits from home investment are often greater than from many other investments.
• Because you can borrow against it in most states, home equity can be a source of emergency funding.
• Land appreciation adds to the value of your home.
• For many, home ownership is an important part of retirement planning.

Personal Satisfaction
• You gain more living space.
• You enjoy the satisfaction and pride of home ownership.
• Home ownership, for many people, is a sign of independence and achievement.