There’s a lot of hype about why you need to own a house. But buying a house isn’t the key to financial security for everyone – and those alleged tax advantages? Also not quite what they’re painted to be. I hope to never own a house again. Here’s a list of eleven reasons – many of them tax-related – why:
1. As investments go, it’s not always a great deal.
2. The mortgage interest deduction doesn’t make up for the fact that you’re still paying a lot of interest.
3. Homes often tempt people borrow more than they can afford.
4. Owning a house subject to a mortgage drives up debt to income ratios.
5. A mortgage is typically 20 or 30 years while, at any given time, the current administration (in Washington DC) has only four (or possibly eight).
6. A mortgage is typically 20 or 30 years. (Limits mobility).
7. Houses take a lot of your money.
8. If you do hit the home appreciation jackpot, there can be significant taxes.
9. I like for things to be predictable and real estate taxes can vary.
10. You can’t deduct a loss on the sale of your home. (But you can for stocks.)
11. It’s getting more difficult to claim the itemized deduction.
There are so many considerations when deciding whether to buy a home. It’s not the ‘ideal’ scenario for all families. Don’t be fooled by promises of tax savings and tax-free appreciation: that’s not always the case. A home is a huge investment.
See the complete article byKelly Phillips Erb at: Forbes
1. As investments go, it’s not always a great deal.
2. The mortgage interest deduction doesn’t make up for the fact that you’re still paying a lot of interest.
3. Homes often tempt people borrow more than they can afford.
4. Owning a house subject to a mortgage drives up debt to income ratios.
5. A mortgage is typically 20 or 30 years while, at any given time, the current administration (in Washington DC) has only four (or possibly eight).
6. A mortgage is typically 20 or 30 years. (Limits mobility).
7. Houses take a lot of your money.
8. If you do hit the home appreciation jackpot, there can be significant taxes.
9. I like for things to be predictable and real estate taxes can vary.
10. You can’t deduct a loss on the sale of your home. (But you can for stocks.)
11. It’s getting more difficult to claim the itemized deduction.
There are so many considerations when deciding whether to buy a home. It’s not the ‘ideal’ scenario for all families. Don’t be fooled by promises of tax savings and tax-free appreciation: that’s not always the case. A home is a huge investment.
See the complete article by