You may wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. With every rent check you write, you're helping to build equity in your landlord's property. That money could be going toward building equity in a home of your own. Today's rates are low enough that your house payment could be lower than your rent payment!
Here are six reasons why you should consider buying a home.
Pride of Ownership - Pride of ownership is the number one reason why people yearn to purchase their own home. It means you can fix, paint or remodel according to your own tastes. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.
Appreciation - Although real estate moves in cycles, sometimes up, sometimes down, it has consistently appreciated over the years. Most people view their home investment as a hedge against inflation. We know that rent will go up over time, so why not lock in your mortgage and watch your home value go up instead?
Mortgage Interest Deductions - Home ownership is a superb tax shelter and our tax rates favor homeowners.
Property Tax Deductions - Fully paid real estate property taxes for a first home and a vacation home are fully deductible for income tax purposes. Also, if you receive more profit than the allowable exclusion upon the sale of your home, that profit will be considered a long-term capital gain as long as you’ve owned your home for more than one year; which are taxed at lower rates.
Equity Loans - Consumers can borrow against a home's equity for a variety of reasons such as home improvement or college. The interest paid on these low interest equity loans is deductible unlike interest on credit cards or other personal loans.
Investment/Financial Independence - Payments on your mortgage loan mean you are acquiring a major possession; instead of rent, you own more and more. Most people start on the road to financial independence through home ownership. Your principal and interest payments remain the same for the full term of your mortgage while your rent usually goes up as the cost of living increases.
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