Homeownership also provides important benefits to owners.

Tax Benefits: For Home Owners Only
Unique tax benefits that apply only to housing help lower the cost of homeownership. Both mortgage interest and property taxes are deductible. Moreover, for married couples, profits of up to $500,000 on the sale of a principal residence ($250,000 for single taxpayers) are excluded from tax on capital gains.

The Advantage of Leveraging
Leveraging is another advantage of homeownership. A buyer can purchase a home and receive the full benefit of homeownership with a cash downpayment that is only a fraction of the total purchase price. This is called leveraging, and it makes the rate of return on a home purchase greater than on
other purchases with the same value, such as stocks, where the buyer must put up the entire price.

Building Personal Resources
For most Americans, homeowner- ship is a primary source of net worth and an important step in accumulating personal financial as- sets over the long term. Although property values have declined in many markets, Americans currently have a total of more than $6 trillion in equity in their homes, and for most families, home equity repre- sents the largest share of net worth.

There Really is No Place Like Home
Although there are many positive financial aspects to homeowner- ship, a home cannot be valued in monetary terms alone. Not only can homeownership be a step-
pingstone to greater financial well-being, it provides a perma- nent place to call home and great personal satisfaction.

Academic research also shows that homeownership provides a wide range of social benefits and strengthens the nation’s people and its communities.
Homeownership is truly a cornerstone of the American way of life.