Question

7. The benefits and costs of homeownership What Are The Benefits and Costs Associated with Homeownership? Purchasing a home is an investment. It should be made with the same knowledge, objectivity, and deliberation that you would apply to the purcha: of stocks, bonds, or life insurance policies. Knowledge of the general costs and benefits associated with owning a home is necessary to make an informed investment decision. What are the benefits associated with homeownership? Owning a home offers physical and psychological as well as financial benefits. Among the physical benefits are shelter and security, while the psychological benefits include: Flexibility and a lack of long-term commitment A feeling of stability and a sense of permanence Homes also provide financial benefits, including serving as a hedge against Inflation and a shelter from taxes. The hedge against inflation occurs, because the price of houses generally increase at a rate equal to or than the rate of inflation, while the tax shelter results from the of the less Property taxes paid on the home greater Insurance premiums paid to protect the home and your contents Down payment paid to purchase the home Home maintenance and repair expenses This treatment on your federal and, in most states, state income taxes results in a realize the full value of this benefit you must taxable income and tax obligation. However, to What are the costs of homeownership?

Answer 1

S.no	Benefits associated with homeownership
1	Owning a home offers physical and psychological as well as financial benefits.Among the physical benefits are shelter and security, while the psychological benefits include A feeling of stability and sense of permanance
2	Home also provide financial benefits, including serving as a hedge against inflation and a shelter from taxes.The hedge against inflation occurs, because the price of houses generally increase at a rate equal to or greater than the rate of inflation, while the tax shelter results from the tax deductibility of the Property taxes paid on the home.
3	This treatment on your federal and in most states, state income taxes result in a increased taxable income and tax obligation.However, to realize the full value of this benefit, you must itemize your deduction