51% of Black Americans own their own home (Arbitron Black
Consumer Study 2003)...but there's always room for more!
Key
Points:
You hear it all the time: "put your money
in your home...or most rich people made their money through
real estate."
But what makes a home a great investment vehicle?
Here are three reasons why:
#1: If history is any guide, real estate appreciates
in value. In other words, as you live in your house, its value
will most likely continue to rise. And, of course,
when you sell it, you’ll most likely get more than what
you paid for it. Home values on average have gone up every
year since the great depression
#2: Home buying is good for the economy, and
the government rewards you for buying one – in the form
of a tax deduction. In most cases, the interest you
pay on your home loan, as well as real estate taxes, can be
deducted on your income taxes –that can mean
the difference between paying the IRS, and getting a nice
check back each year! And remember: when you rent, you get
to deduct nothing.
#3: Usually, when you sell investments for
profit, you pay taxes on that profit (known as capital gains).
With a home, as long as you’ve lived there a
minimum of two years and its your primary residence, your
gains are tax-free! That money can be used to finance
another home, saved, or used for other investments!
Plus, as you start to build equity in your home
(when the home value exceeds the amount you owe), you can use
that equity to finance other purchases -- like home improvement,
cars, or furnishings, often at lower rates than conventional
personal loans.
Stack all of those things together, and you
can see that buying real estate has proven over time to be one
of the best ways to achieve wealth!
For more information on achieving black wealth
in America, order the You Can
Achieve Black Wealth
CD or e-mail us at info@achieveblackwealth.com.
