Assuming that most Americans can’t afford to purchase their home with cash, a mortgage is a necessity. Whatever type of mortgage you have, you’re paying interest, and because you own real estate, you’re paying property taxes. Both mortgage interest and property taxes are deductible. The higher your effective tax bracket, the more these deductions matter. But if you’re income crosses over a certain threshold the tax deduction begins to phase and ultimately could be eliminated. There are also tax deductions on certain closing costs that can also mitigate the front-end cost of buying a home. Home ownership also means you’ll be paying for home maintenance. However, you can purchase a home with a home warrantee to alleviate some of the maintenance costs. Some capital improvements around the house can increase your cost basis. That being said, not everyone can benefit from it. After the housing debacle in 2008, home appreciation has picked up again. But, banking on residential appreciation is no longer a given. This is where the argument comes into play. If you’re a senior and buying your last home, residential appreciation is an issue for your heirs, but not necessarily for you. If you’re a first time buyer   Read more…