Home Ownership As A Savings Plan

Home ownership is one of the things that make this country great. There are not many places on the planet you can with little or no money own land and then resell it for a profit and through proper planning not pay taxes.

It serves as a savings plan and has tax advantages to go along with it. If you bought a house in 1975 for $27,000, financed at 7% interest, your principal and interest payment would be $179.00 per month. This would make the total payments of the house $64,440.00 (not including taxes and insurance). It is safe to say that that property would be worth at least $150,000.00 today. If you factored in $2,400 per year for taxes insurance and maintenance for 30 years that comes to another $72,000.00 totaling $136,440.00 with a yield of $13,560.00 plus a place to live for 30 years.

The federal government believes that homeownership is important enough to the American economy that HUD (Housing and Urban Development) a cabinet level position. The tax code encourages home ownership.

Home Ownership As A Savings Plan