Rental prices in Las Vegas have been steadily recovering over the last few years, making home ownership a goal worth considering. In fact, a one-bedroom rental will likely cost most people an average of at least $119 more per month (nearly $1,400 annually) in 2016 than in 2009. The price of two bedroom rentals are also steadily rising.
When rental prices increase, folks often find themselves in the position where paying rent no longer makes sense when compared to the tax and quality of life benefits of owning your home.
So what are the benefits of home ownership? Quite a few, as it turns out:
- Despite the turbulence of the past decade, home ownership builds wealth over time. The only catch to this proven rule is to make sure you buy a home you can afford. Sure your income is likely to increase with promotions and pay raises, but so will costs of goods and services.
- The mortgage tax deduction reduces your tax obligation. Interest makes up the largest part of your mortgage payment, especially during the initial years of home ownership. By deducting the interest from your tax obligation, you get to keep more of the money you make which means huge tax savings for most folks.
- Property taxes are also deductible. In addition to interest, you also get to deduct property taxes from you gross income. In fact, you can even deduct some closing costs including any points or origination fees charged on your loans.
- Additional financial benefits accrue. Whether you take out a home equity line of credit (on which you can again, deduct the interest payments), build equity by making home improvements, or by renting out the property when you upgrade to a new residence, home ownership offers the opportunity to have more financial flexibility both now and in the future.
- Making home, well, home. Have you dreamed of having a private resort-style backyard for your family to enjoy? How about a beautiful spa-like bathroom? When you have your own home, part of the fun is decorating and furnishing the home to match your personality and desires. Buying a home in Las Vegas, Nevada can turn that dream into a reality.
The truth is, the benefits of home ownership are countless. Home is where lasting family memories are made and where good friends gather. But most important of all: home is where the heart is.