As an owner of a condominium home, you have numerous advantages that are not typically available to renters.

TAX BENEFITS

When you buy your condominium home, you will be entitled to certain tax benefits that could make a big difference to your financial situation.

Mortgage Interest:
All the interest you pay each year on your mortgage loan is fully deductible from your income. The limitations are only that the mortgage must be for a first or second home and the mortgage amount must meet established guidelines.

Points:
Points are the fees charged by the lender for your loan, and they're fully deductible in the year you pay them.

Property taxes:
The property taxes you pay on your home are also deductible from your federal income at tax time.

Capital Gains Exemptions:
Tax laws presently give most married homeowners an exemption of up to $500,000 from capital gains tax on the profit they realize on the sale of a home they’ve lived in for two of the last five years. Unmarried homeowners can take a tax – free profit of up to $250,000.

This is an overview of the tax benefits of home ownership. Each taxpayer's situation is different so before you buy a condominium home be sure to consult with your accountant or financial advisor to understand all of the benefits available to you.

BUILD EQUITY AND HEDGE AGAINST INFLATION

Homeownership helps you build equity and keep up with inflation. Although not all homes appreciate at the same rate and some years are better than others, real estate has historically kept pace with (and usually appreciates faster than) the rate of inflation. Over the last five years the average homeowner has seen the value of their home increase by over 50%.

Renters do not participate in the potential appreciation of real estate. For example, if you purchased a condominium five years ago for $100,000 and the value of that condominium has appreciated 5% each year, your condominium is now worth $125,000. Compare this to a renter who has paid rent to live in a similar condominium for the last five years, what appreciation does he have?

YOU CONTROL WHAT HAPPENS INSIDE YOUR CONDOMINIUM HOME

When you own your condominium, you have the freedom to make decisions about your home; what color to paint the walls, change out the appliances or add built-in cabinets if you want. Renters are typically not allowed to personalize their apartments.