Why Buy a Home

Many young people get nervous about purchasing their first home.  This is very normal. However the more you know about buying a home, the easier the process appears. Here are some good reasons why you should buy a home.

Pride of Ownership

Pride of ownership is the number one reason people begin thinking of buying their own home. You can paint the walls any color you desire, turn up your music, attach permanent fixtures, and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It’s an investment in your future.



Real estate, like all investments, does go through cycles.  However, over the years, real estate has consistently appreciated. For most people, their home is the single best investment they own.  It is a forced savings plan, and typically their greatest asset when they reach retirement.


Mortgage Interest Deductions

Home ownership is a superb tax shelter, and our federal tax laws heavily favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return.


Property Tax Deductions 

Real estate property taxes on your primary home and vacation home are also fully deductible on your federal income taxes.


Capital Gain Exclusion

As long as you have lived in your home for two of the past five years, all profit on the sale of your home is tax-free, up to $500,000 in profits for a couple (or $250,000 for an individual).  You do not have to reinvest the money, or purchase another home. In fact, you can claim this exemption up to every 24 months.  Therefore, you can receive up to $500,000 in profit from selling your home, every two years, tax-free.


Preferential Tax Treatment

If you receive more than a $500,000 profit on the sale of your home, that profit is considered a capital asset (as long as you owned your home for more than one year). Capital assets receive preferential tax treatment, meaning you are not taxed on the full amount.


Mortgage Reduction Builds Equity

Each month, part of your monthly payment is applied to the principal balance of your loan, reducing the amount you owe every month.


Equity Loans

You can borrow against the equity in your home, and these loans are a tax write off as well.  Currently, equity loans are ranging from 2% – 4% interest.  This is below many student loans, car loans, and far below the 18% to 22% of credit cards.


These are just a few of the benefits of owning a home.  If you would like to discuss these any further, please contact Kyle Alfriend, Alfriend Real Estate Group, Re/Max Achievers.


(614) 395-1776

Kyle Alfriend is the managing partner of The Alfriend Real Estate Group. He has been representing buyers and seller for 30 years, and sold over 1,800 homes.

About The Alfriend Group

Kyle Alfriend has been selling and marketing homes for over 20 years, successfully selling and buying homes in a variety of market conditions. He has sold over 1,200 homes, totaling over $250 million in homes sales. In Dublin, he has sold more homes that anyone ever. He has represented the areas largest builders, built his own homes, and owns and manages several investment properties. He has been awarded the "Top 10 M.A.M.E. Award (Major Achievements in Marketing Excellence) by the building and Realtor associations every year since 1993. He believes that everyone deserves the very best in knowledge, experience, and integrity when buying or selling their home. The Alfriend Group was started 5 years ago as a real estate team of professionals, specializing in buying/selling homes, property management, and real estate investments. For more information, call us today at (614) 395-1776.

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