A house represents so much more than a home

A home is much more than four walls connected to a roof.

Another generally accurate way to describe a house is that it is a giant-sized piggy bank in which one or more can live.

Let’s take a look at some of the items that homeownership provides.

First of all, there are tax breaks the U.S. Tax Code allows when you pay on your mortgage, property taxes and some of the costs in buying your home.

Historically, having your own home provides equity instead of the rent money that you’ll never see again. With ownership, your payments build equity interest in your home — really, kind of living in that giant piggy bank.

In addition, there are gains in value over time. Between 1998 and 2002, national home prices increased at an average of 5.4 percent annually. There is no guarantee of appreciation, of course, but a study by the National Association of REALTORS® found that a typical homeowner has approximately $50,000 of unrealized gain in a home.

That’s found money. Unlike rent, your mortgage payments are a ready-made savings plan. And, when you decide to sell your home you can take up to $250,000 ($500,000 for a married couple) as a gain without owing any federal income tax. That is a valid load of dollars that can be realized. To be eligible, you must have lived in the home as your principal residence for two out of the last five years and you must not have sold or exchanged another home during the two years preceding the sale.

Also, as of 2003, you may also qualify for this exemption if you meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce or family emergency.

Also, unlike rent, your mortgage payments under conventional loans don’t go up over the years so your housing costs may actually decline as you own the home for a longer time. On the negative side, property taxes and insurance costs will rise if the appreciation on your house increases.

Stability is another item to consider. Remaining in one neighborhood for several years gives you a chance to participate in community activities and lets you establish lasting friendships. It also offers your children — if you have them — the benefit of educational continuity.

And, another item may sound a bit quirky, but is probably valid. And, that is owning a home provides freedom. As long as you’re a good citizen who takes care of the place, you have a very important and pleasing thing to remember — the home is yours. You can decorate anyway you wish and be able to benefit from your investment for as long as you own the home.

Think about it.