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Promoting Home Ownership

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Homeownership is something every individual dream of. Homeownership is having legal rights over a piece of land used for residential purposes. Several benefits associated with homeownership make it such a favorable investment. Here are some pros and cons related to homeownership. Do you want to buy plot in Blue World City?

It acts as a long-term investment.

The value of properties in the real estate world increases with time as the property appreciates. Hence the amount you spend on the house’s property will double in the future. Not all properties experience a sharp increase in prices; however, if you keep the property for a long time, you will be able to make a profit. Buying a home is considered one of an individual’s best investments. The value of a property hardly depreciates over time, the structure might depreciate, but the value of the land will always increase. Homeownership hence does not only provide you with a place to live but also acts as a long-term investment.

Capital Gains tax

Capital Gains tax is applied on the profit earned by selling the property due to the increase in value of the property. If you sell a house that you reside in, the law does not require you to pay capital gains tax, and you can keep all the profit you have earned. However, there are a few conditions that you have to meet for this exemption to apply. You must have lived in the property for over two years and should have owned it for more than five years. The property should also be the only residential home you own, and it should not be used in any income-generating activities.

Tax cuts

Homeownership can help you reduce the total amount of tax you have to pay to the government. While owning properties generally increases the tax payable by you, there are ways in which you can lower the amount. You can deduct any expenses incurred by you from the property’s value and reduce the total tax charged. Tax is calculated by applying a fixed percentage to the full value of the house, so the lower the value of the property, the lower the value of the home. josé trinidad marín . Furthermore, if you have bought the house on a mortgage, you can also add the interest payable as an expense. The cost of maintenance also results in tax deductions. Read more about Capital Smart City.

Financial security

Homeownership gives individuals financial security and makes them feel more confident. If you own a house, you will have a place to live even if you lose your job and go through a financial crisis. Life is unpredictable, and things can go wrong. Owning a home helps you deal with any financial crisis you may face and hence acts as your last resort. Furthermore, banks and private lenders are more willing to lend you a loan if you already own a property. They also charge a lower interest rate because they see you as a financially strong individual who has the capability to repay the loan.

Cons of homeownership

Homeownership is not easy and can be quite complicated sometimes. Owning a home involves several legalities which are sometimes hard to comprehend. Furthermore, owning a home requires a lot of maintenance. Unlike in a rental property, you will be responsible for everything and help take care of the house. A house is not a liquid asset; that means you can sell it whenever you want, and your money will stay stuck.


Homeownership is called the American dream—people worldwide dream about owning their own home one day. Homeownership has become easier these days due to the easy availability of loans and mortgages. Individuals can now buy a house on a mortgage and pay the money in monthly installments, making it more affordable. Invest in 1947 housing.

Author Bio

Ramza Zahra is a Karachi-based freelance content writer who uses her life experiences and curious nature to research and pen it down and make a living. Currently, she is working with Sigma Properties as an Snr. Content Writer.







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