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There are advantages and disadvantages to owning a residence whether it's a free standing home or an apartment.
Advantages include:
- Potential source of income.
- Equity build up
- Tax breaks
- Debt leverage
- Inflation hedge
- Possible source of few-questions-asked life insurance
- Medicaid planning
Disadvantages include:
- Not a liquid investment
- Ongoing costs such as taxes and maintenance
- Survivors get less if residence is in your estate.
Each of these subjects are discussed in more detail below.
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