FLEMING REAL ESTATE

CAPE MAY, NJ

Renters want the same thing homeowners have – a good place to live, stability, security – and money down the road when they sell their homes. Renters may have some of those things now, but even after years of renting, they'll still have nothing to show for their housing payments except rent receipts.

In addition to the pride that comes with ownership, here are some major financial advantages that owners enjoy:

* House payments generally don't increase, but even small annual increases push rents much higher over time.

* Homeowners can deduct their interest on up to $1 million worth of their homes' acquisition indebtedness, and all their property taxes. Renters indirectly pay all their landlords' principal, interest, taxes, and other costs – but the renter gets no such tax deductions.

* Renters don't profit from leverage. Owners gain appreciation on the entire value of their home, even when they have very little of their own cash invested in it.

* The equity in a home returns to owners when they sell.  Renters get no equity from the homes they live in.

One of the main reasons renters give for not buying is that they lack enough savings for the down payment on a home. If you're a renter, you should know there are programs available now to enable you to buy a home with a down payment of just 5% or even less. Interest rates are not high by historical standards, so chances are you can own a fine home!