While it may seem daunting to the first time home buyer, there are many advantages of home ownership. Most of these advantages are financial in nature. The six reasons below are just a few reasons to consider when thinking about owning your own home.
1. Tax Breaks – Interest that you pay on your mortgage, your property taxes and some other costs involved in buying a home are tax deductible expenses.
2. Appreciation – Real estate has long-term, stable growth in value. Year-to-year fluctuations are normal, however median home prices have increased on average of 4% each year from 1972 – 2005. The number of U.S. households is expected to continue to rise over the coming years which will create a continued demand for housing.
3. Equity and Savings – Mortgage payments allow you to build equity ownership interest in your home. Building this equity is a ready-made savings plan!
4. Predictability – Your fixed- mortgage payments do not rise over the years, so your housing costs may actually decline the longer you own your home. However, property taxes, insurance and maintenance costs do increase.
5. Freedom – The home is YOURS! You can decorate it any way you want and benefit from your investment as long as you own the home.
6. Stability – Remaining in one neighborhood for several years gives you the chance to participate in the community, allows your family establish long-lasting relationships and offers your children the benefit of educational continuity.
The advantages of home ownership listed above are most financial in nature. However, home ownership allows allows for levels of freedom and stability that renting or temporary housing cannot provide. If you are considering a new purchase, please feel free to contact me for a free 60 minute consultation.