Exclusive Buyer

in fact, you might not have permission from the landlord to make any changes. Further, any changes you might make won’t increase the value for you, but rather for the property owner. 3. Controlling housing expenses. When homeowners select a fixed-rate 15-, 20-, 25-, or 30-year mortgage, they have the assurance that monthly mortgage payments and overall housing costs will not increase over that period. Renter disadvantage: With renting, property owners are known to increase the amount of monthly rent and other expenses you must pay annually, and sometimes randomly, without much notice. You don’t have control over this. 4. Tax advantages of homeownership. As a homeowner, you qualify for major tax benefits when you buy a house, both at the time of purchase and for the duration that you own the home. Homestead exemption is one example; many states exempt all owner-occupied homes (“homesteads”) from a portion of the property tax that would normally accrue over time. Further, homeownership entitles you to certain federal tax deductions, such as claiming your property taxes and mortgage interest paid, offsetting your annual income tax burden. You can also claim any mortgage discount points on the loan; these points are equal to 1% of your mortgage and involve prepaid interest. They are tax deductible and can reduce your total mortgage payment. Renter disadvantage: If you rent your home, you might be able to claim the rent you paid for the year on your income tax, but the tax benefits end there. Renters aren’t eligible for housing-related federal tax credits or deductions.