Are you still renting an apartment? Maybe you’re living with a family member but dream of owning your own house “someday”. The time has come to stop dreaming and start “doing”! The end of 2015 is a perfect time to look into finally purchasing a home, and 2016 is shaping up to be a banner year for the Real Estate Industry. There are literally hundreds of reasons you should become a home owner sooner rather than later, but this week we pulled out the Seven Main Reasons You Absolutely Should Purchase A Home to help get you started on the right track.
1. Tax Breaks Mean More Money In Your Pocket
Everyone knows U.S. Tax Code lets you deduct the interest you pay on your mortgage, which can result in a bundle of cash coming your way. The tax benefits to owning a home don’t stop there, however, as even property taxes, as well as some other miscellaneous costs involved in purchasing a home may also be eligible for tax deductions. Do you know how much of your rent payment you’re able to claim on taxes each year? Zero. Zilch. None.
2. Your Home Can Quickly Appreciate In Value
Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Owning Your Own Home Builds Equity
Remember how we mentioned there are no tax deductions you can claim from your rent payments? It gets worse. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Home Ownership Is Like Having A Built-In Savings Account
Building equity in your home is a ready-made savings plan. When you sell your home, whether to upgrade to a larger home or are forced to relocate for work, you can generally take up to $250,000 ($500,000 for a married couple) as a gain without owing any federal income tax.
5. Having A Predictable Payment Is A Good Thing
Unlike rent, fixed-mortgage payments don’t rise over the years. In fact, your housing costs may actually decline the longer you own the home! Keep in mind, however, your property taxes and insurance costs will increase.
6. The Freedom To Do What You Like
Freedom—there’s nothing like it! The home is yours. You can paint the walls purple! You can invest in a swimming pool! You can knock down walls to make bigger rooms (you might want to consult with a contractor for that one!) You’re getting the idea, right? Your home is yours to decorate exactly the way you want—no need to ask your landlord, or your parents, for permission.
7. A Stable, Secure Lifestyle
Remaining in one neighborhood for several years gives you a chance to participate in community activities allowing you and your family to establish lasting friendships. Also, your children will be able to take advantage of the long-term benefits available by attending the same school for several years.
Ready to look into purchasing your own home? Contact Coldwell Banker Innovations at 301.745.1500. We will gladly introduce to our award-winning agents, all ready to help you finally become a homeowner!