Top 5 Reasons to Buy a Home
Throughout the history of our real estate industry, homeownership has been at the heart of many Americanâ€™s from pride of ownership to long-term wealth building. The market here in Phoenix is on a rebound but the frenzy of the multiple offers and low inventory has some home buyers wonder if they should really buy. In any market condition, it is always important to remember the benefits of homeownership. Here are theÂ top 5 reasons to buy a home:
Home ValuesÂ â€“ in some areas of the Valley, home prices are below what they were in over ten years ago and in some cases, below what the homes were built for new. There has never been a better time to take advantage of the home affordability.
Rent verses MortgageÂ â€“ to rent a three bedroom home in the Phoenix metro area, you are probably looking on average at $900-1000.00 per month. Consider purchasing that home for around $100,000? With interest rates hovering around 4.50 percent, you could purchase a home with a principle and interest payment of approximately $507.00 per month â€“ cheaper than you can rent the same home. Â *example based on an $100,000 purchase price and does not include mortgage insurance, taxes, hazard insurance or down payment figures*
Pride of OwnershipÂ â€“ According to the National Association of Realtors, pride of ownership is the number one reason why Americans yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you a sense of stability and security. Itâ€™s making an investment in your future and your quality of life.
Future AppreciationÂ - based on our recent past, you may feel that real estate is not a solid investment. But in reality, if we take a closer look at history, every market has different trends, where some markets are stronger than others. In reality, our market today has presented a better opportunity to own a home today, at pricing that will not last forever. Donâ€™t find yourself saying, â€œI wish I would have bought back then!â€
Tax IncentivesÂ â€“ home ownership is a fantastic tax shelter and our tax system actually favors homeowners. As long as your mortgage balance is smaller than the price of your home, your mortgage interest is fully deductible on your annual tax return. In the beginning, the interest payment is the largest chunk of your mortgage bill each month. Additional, IRS Publication 530 contains tax information for first-time home buyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. If you own a home, you may actually pay less in taxes than if you are renting.