The decision to buy a home is one of the biggest, most important ones you’ll make in your lifetime, both financially and emotionally. Here is a summary of some of the benefit of (after careful consideration and with professional guidance) taking the leap:
Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
Appreciation. 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 after a decline during the recession, are back on the rise. I still do not recommend buying for the short time frame, but, as mentioned above, if you plan to live in a home for at least 4+ years, a home can be a worthwhile investment. The number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing and the Charlottesville are continue to grow, with a strong underlying economy.
Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Some post content from Realtor Mag.