Here Are The Top 5 Reasons To Buy A Home Now!!!
This Article On The Top 5 Reasons To Buy A Home Now Was Written By Gustan Cho NMLS 873293
Rent Is Getting Higher Across The Country
Rents are increasing across the nation with no signs of a pullback. Many parts of California, there are housing shortages where there are more people looking for apartments and/or homes than there are units available. With a major housing shortage from coast to coast, it only makes sense to buy a house instead of rent if your mortgage payment is close to or lower than your current rent. If your new housing payment on a home purchase is significantly higher than your rent payments, then buying a house may not be on the top of the list to do things on your agenda, however, if your new mortgage payment and housing expenses are virtually the same, or close to what you are paying for rent, buying a home is a no brainer. This blog on The Top 5 Reasons To Buy A Home Now explains the importance of purchasing a home now rather than later. Mortgage rates are still at an all time low and home prices are increasing and the whole country is witnessing a bull housing market.
Home Ownership Is A Great Investment
The second of the top 5 reasons to buy a home now is due to being an excellent investment- This little fact that a new home will be the largest and best investment for most families in their entire life has not changed. There was a “hick up” in this philosophy. The “mortgage crisis” and housing bubble is over. Regardless, if you look at the larger picture the overall housing market as horribly impacted as you may have seen on the news. Mortgage delinquencies never his double digits, and for the most part, even at the worst of the mortgage crisis, more than 90% of homeowners continued to make their payments. With this said, with every mortgage payment made a percentage of your mortgage payment is applied to the principle of your mortgage balance. At the same time you are make a payment that reduces the amount you owe on your hours home, your house will appreciate or grow over time. This makes your house a big piggy bank.The government and market have made adjustments to protect against a future housing bubble and mortgage meltdown. Many of the high risk mortgage programs such “no doc” or ‘liar loans,” and “interest only” loans in that there is no credit to principle with every mortgage payment are no longer in existence, and are not even legal in most states.Ultimately, the government believes in this homeownership model as essential to further growth of our economy. Buying a home is a good investment and you can bet the government is on your side. Here is an older post about appreciation I read that still holds true On Purchasing Another Owner Occupied Home After Refinancing .
Tax Benefits For Homeowners
The third of the top 5 reasons you should buy a home now is due to the benefits of Tax Write Off- Home Mortgage Interest is still tax deductible. As taxes continue to rise, and our deductions are cut or scrutinized, home mortgage interest has still remained an income tax deduction safe harbor. If you are renting, you do not have this deduction.The way this works, especially with a 30 year mortgage, interest is front loaded or most of your mortgage payment in the first several years of a mortgage. IF you are paying a $2,000 a month mortgage payment, about 90% or more of that payment is interest. 90% of $2,000 is $1,800. $1,800 multiplied by 12 equals $21,600.If a family earns $85,000 a year worth of taxes, they would use the mortgage interest tax deduction of $21,600 above to reduce their taxable income. Using a simple example number such as 30% multiplied by $21,600 equals $6,480. All of this is for demonstration purposes only and you should consult a tax professional for accurate tax planning advice. However, a renter benefits from none of these tax advantages, but his/her landlord does take full advantage of these tax deductions.
One of the top benefits of being a homeowner versus a renter is having the pride of home ownership. Being a homeowner does offer its benefits. You have the freedom to do anything you want to your home as a homeowner. Renters cannot paint their home with the color of their choice. Renters cannot get pets if they want and need the permission of the landlord. The fourth of the top 5 reasons you should buy a home now is if you have a growing family- It’s not a secret that human being procreate. If you live in someone else’s property, you cannot typically make improvements as needed such as when you expect a new baby. If you put a fence up because you bought a new puppy, you put a fence up for your landlord and not your family.If you live in a 2 bedroom apartment and you already have one kid, and you have another on the way, there is never a better time to buy a new house.
Putting Up With Neighbors
The last of the top 5 reasons you should buy a home now is Putting up with the Neighbors – The biggest problem with renting and especially in an apartment is the neighbors. You can’t have people over when you want. Your kids have to be super quiet when they walk around the house. You can’t play your music loud on a Tuesday night because you got a promotion at work. Good luck having a party, or a cook out.Probably the best thing about having your own home is having the ability to have people over when you want, whenever you want, without having to deal with the neighbors.