Benefits of Owning Your First Home

One of the primary reasons that people buy a home is to improve the quality of their lives.  When you rent, you have a place to live; when you buy, you have the stability and control over your life that you do not get from renting.  Additionally, you gain the benefit of a financial investment, and you are permitted to deduct the interest that you pay in taxes for your new property, fixed monthly payments, and tax free gain if you sell your home at an appreciated value from the date that you purchased it.

Below is a summary of the primary benefits of owning your first home:

1.  Financial investment

First and foremost, your monthly mortgage payments create equity for you.  Further, assuming that you put 10% down on your home, and the house appraises 5% over time, then you have a 50% return on your investment (investment = down payment amount).

2.  The interest on your mortgage is tax deductible

In most cases, all mortgage interest can be deducted from federal taxes, provided that you meet certain criteria:

While a tax deduction is not a reason to buy a home in and of itself, it is certainly nice to get one. J

3.  Fixed monthly payments

While your interest amount paid is going to be higher the first few years of your mortgage because your amount financed is higher, the total payment amount won’t change as long as you have a fixed rate on your loan.

4.  Tax free gain

This is probably one of the best, if not the best, tax breaks available if you are a homeowner.  When you sell your primary residence, the first $250,000 in profit (selling price over the price paid for your home) is tax free, and, if you are married, the first $500,000 in profit is tax free (with some restrictions).  Please visit for more information.

Questions or comments?  Please feel free to reach out to me at any time at 424.333.0557 or

Paolo Lissia

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