7 Reasons to Own a Home (the power of property)
May 30, 2025Read time - 3.5 minutes / Disclaimer
Owning a home can:
- Settle your family.
- Give you more space.
- Help you feel grounded.
Unfortunately, there's other perks that aren't talked about.
Buy or Rent?
Deciding to buy or rent is a hot topic these days due to:
- High home prices.
- High interest rates.
- Less homes available.
Most people know the main differences.
Source: ramsey solutions
But there's other homeowner perks that aren't talked about much.
Perks you figure out — after you buy.
I didn't know most of them when buying my first little condo.
Over time I realized, there's many.
The truth is—
The government wants people to buy homes.
So they provide massive money-saving perks.
Here's 7 less common reasons to own a home (reasons I wish I knew on day one).
Hope it's helpful.
Let's dive in:
1. The Property Taxes
Deduct your property tax.
Normally you can deduct how much you pay each year in property tax on your tax return.
The IRS has rules on how much, for example:
- $10,000 is currently the most you can deduct each year.
Deducting your annual property tax payments help you save money.
2. The Loan Interest
Deduct your loan interest.
Typically you can deduct how much you pay each year on your home loan interest.
The IRS has rules on how much, for example:
- Deduct interest on loans up to $750,000 if the loan was taken out 12-16-17 or later.
Deducting the interest you pay on your home loan helps lower your taxes.
3. The Home Updates
Save on home updates.
Big improvements to your home can lower your taxes.
A few different ways per the IRS:
- Replacing your roof.
- Paving your driveway.
- Building yourself a deck.
There's many places to shop to increase the value of your home (home depot fan here).
Home updates can lower your taxes in the current year or when you sell.
4. The Property Value
Homes go up long term.
For example, the average price of a home by year:
- $165,000 (2000)
- $220,000 (2010)
- $335,000 (2020)
- $416,000 (2025)
You can see ​the full history here​.
Owning a home long term has been a wealth building tool for many families.
5. The Tax-Free Cash
Refinancing an existing home loan can have perks.
Some include:
- A lower interest rate.
- A lower monthly payment.
But a less talked about perk:
- Tax free cash
Using equity in your home like $50k, $100k, etc for other things (like buying other assets).
Taking cash out when refinancing a home is not taxable income per the IRS.
6. The No-Tax Sale
Get a tax break when you sell.
The IRS has rules on how much tax you pay when you sell your home, for example:
If your home increased in value by $250,000 (as a single person) or $500,000 (as a married person) — you pay no capital gains tax if...
- You owned the home at least 2 years within the 5 years prior to the sale.
- You used the home at least 2 years as your main residence within the 5 years prior to the sale.
-You must not have used this perk on another home within 2 years before this sale.
Click below if you want to read more about it or look up other topics mentioned above:
The IRS offers some hefty tax breaks when selling your primary home.
7. The Family Inheritance
Give your family a tax break.
The IRS allows inheritance tax breaks too.
The Money Cruncher is a great follow for all things taxes.
We met in San Diego, CA a few months back. Nice guy and sharp as a tack with taxes.
If you buy a house for $200,000 and it’s worth $1,000,000 when you pass away, your children generally get a “step-up in basis” to the current value.
— The Money Cruncher, CPA (@money_cruncher) May 25, 2025
If they sell it right away, they pay no capital gains tax.
But if you gift it to them shorty before passing, they inherit your…
Passing your home on to family can be a big way for them to save on taxes.
It's important to point out —
This list is intended to be educational, not financial advice.
Chatting with a CPA about your specific tax situation is best.
The Bottom Line
Owning a home has many obvious perks.
And many less obvious perks.
Making sense of all of them helps you make the best decision (when deciding to buy or sell).
Especially in a tougher real estate market, like today.
I hope this little cheat sheet is useful.
Keep building đź’°
See you next week.
