Benefits of Home Ownership
Have you been considering
buying a home? Have you wondered if it was better to rent or to buy? Have you
wondered what the benefits to buying a home are? With mortgage rates at the
lower end of the spectrum and the five reasons below, I think you will see that
this is still a great time purchase a home.
1.
If you are renting you are paying someone else’s
mortgage. Along with paying their mortgage you are giving that person a nice
tax deduction that could be yours. Mortgage loan
interest may be deducted on your tax returns. This tax savings is not an option
available to renters. (Consult a tax professional about the tax savings
benefits of home ownership.)
2.
How many times has your rent increased since you have
started renting? You have no control over if it will increase or not. When you
purchase a home you have stability, because fixed mortgage payments (principal
and interest) will not change during the loan term whereas rent payments may
increase annually.
3.
When you move out of your rental property you will not
have anything to show for it, except that you had a place to rest your head and
to store your things. Home ownership allows you to build equity. Owning a home
long term allows equity to build and thus your home investment to grow. Do you
know what equity in real estate means or how it works? It’s the difference between the current fair
market value of the property and the amount the owner still owes on the
mortgage. It is the amount that the owner would receive after selling a
property and paying off the mortgage. Equity can be used to obtain a line of
credit or a loan for home improvements, cash for emergencies or big-ticket
items or to bring down the amount you would need to borrow on a bigger and or
nicer home.
4.
In most markets your home will appreciate. This means
it will increase in value over time and this with paying your loan down is how
you obtain equity in your home. Your rent payment does not give you any return
on your money.
5.
What types of options do you have in making your rental
property reflect your personality or your lifestyle? Anything you do will need
to be approved by your landlord, correct? When you purchase a home you have a
place to call your own. A place you can add your own touches with paint, flooring, fixtures, landscaping or complete remodel that will reflect your tastes and lifestyle. Maybe you would like your own pool and the privacy it affords you and your friends and family. How about the chance to get to know your neighbors, neighborhood and be involved in what goes on in your area.
Is it time for you to stop
throwing away your rent every month? Do you want your tax savings, the
stability of the same monthly payment, to be able to build equity and
appreciation, as well as a place to call your own? Now is a great time to invest your hard
earned money in home of your own. Call
The Ehrke Team 480-526-0306 and find out where to start.
