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Owning a home will always have financial benefits that far outweigh the cost of renting a home or apartment in the Chicagland area. If you are in a favorable financial position to purchase a home, and have good credit and a down payment, here are some examples of the financial benefits to owning real estate in Chicago and the suburbs:

1. Federal Tax deductions baby! It’s a big one, especially in the early years of your mortgage before the payment becomes amortized. The interest on your mortgage is tax deductible, and it can add up to some hefty savings when it comes to filing your W-2’s. Isn’t money always more fun when it’s in your pocket!
2. Real Estate has traditionally been known as owning an appreciating asset. A well kept home in a stable market can double or even triple in value at the end of a 30 fixed rate mortgage. I know, I know… homes aren’t really appreciating right now. (that’s a whole other story) The fact is, right now is a great time to buy because as the prices begin to plateau at the bottom of the decline, they should begin to appreciate at the average rate of 3-5% per year rather quickly. Purchasing a home in the Chicagoland area in the next 18 months, before the aniticipated end of the decline in home values, will place a homeowner in a position to begin building equity. Buying low and selling high are the key to maximizing real estate appreciation in the Chicago suburbs.
3. Being able to turn your equity into a liquid asset. Home equity lines of credit (HELOC’s) or home equity loans (second mortgages) have their benefits if you know how to make them work for you. Instead of applying for a traditional bank loan or maxing out a high interest credit card for big purchases or emergency situations when you have the ability to pay them back is a great example of a good use of a home equity loan. Using them to go shopping or to buy a new car… not so much.

And now for the fun side of owning your own home in Chicago and the suburbs:

1. You can paint, wallpaper, carpet and tile any room your house without permission.
   
2. You can grow a garden, or plant a tree anywhere in your yard.
3. You can wash your car in the driveway.
4. You get to have backyard barbeque’s in your own backyard.
5. You can surprise your son or daughter with new puppy for Christmas without getting permission from the Grinch.
6. You don’t have to call the landlord when the above mentioned puppy chews off a corner of the drywall in the living room!
7. You can hang pictures on any wall in the house without fear of losing your security deposit.

I know I got a little silly with the last part, but owning a home IS fun, and it comes with a sense of pride and accomplishment. For anyone that’s carefully taken the steps necessary to become a homeowner, it’s a decision most people make without looking back!

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