A homeowner fears the construction of a factory nearby will decrease the value of her property. this illustrates the principle of externalities.
Many people are unaware that there are tax advantages for home owners when they purchase, own, remodel and even sell their property. These advantages take the form of tax deductions, which lower your taxable income and hence lower your tax payment.
However, you might be astonished to hear that even though the house was bought with a mortgage, you still own it. As the homeowner, your name is listed on the title. The lender does not actually own your home; rather, they only have a stake in the property and the mortgage note.
According to the Federal Reserve's 2020 Survey of Consumer Finances, if you own your home, you probably have a higher value than someone who rents. The assumption that owning a home is a wise financial decision is supported by the fact that homeowners have a net worth that is more than 40 times bigger than their counterparts who rent.
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