Should You Buy a Home?
If you are asking yourself that question, what are you afraid of? Are you worried that you can’t afford a mortgage? If you’re renting, you are already paying your landlord’s mortgage. Wouldn’t you rather build your own equity?
The wide range of benefits to home ownership may surprise you. Not sure why you should buy? Here are a few reasons to consider:
Benefits of Home Ownership
FREEDOM – How many times have you passed the paint swatches at your local home store and wished you could paint a room one of those fun colors? When you own your home, you have the freedom to paint, renovate, have a garden, update the appliances, build a deck or have a pet.
SECURITY – The housing in neighborhoods with owner-occupied homes often have more privacy, a quieter living environment, better neighborhood upkeep, and a safer community because people are invested in the neighborhood.
PREDICTABILITY – Unlike rent, your monthly mortgage payments will stay the same throughout the life of your loan if you choose a fixed rate loan. This makes it easier to do long term budgeting and planning. And if you expect to get pay raises in future, your home will become more affordable over time.
TAX ADVANTAGE – Home mortgage interest is deductible if you itemize on your tax return. So are the closing costs and the property taxes.
APPRECIATION – Home prices generally increase over time. Appreciation leads to equity in the home which is like a savings plan. When you sell you can take $250,000 ($500,000 for married couples) as gain without any federal income tax.
EQUITY – You can deduct up to $100,000 in home equity debt even if you don’t use the money on your home or home improvements. You could use the equity in your home to pay for education or other investments. It is not advised to treat your home equity as an ATM machine, but it is good to have when you have something big or important come up unexpectedly.
UPGRADES – Any improvement you make to the home by decorating, updating or landscaping can increase the value of your home and contribute to your equity. Many upgrades also make your home easier to sell when the time comes.
COMMUNITY – Neighborhoods that include owners are neighborhoods where people are truly invested in the community. Owners are less likely to move as frequently so people have time to meet each other and take an active role in the government, safety and maintenance of the community.
STABILITY – Children raised in homes their families own have more self confidence and a sense of security. They also have a better chance of participating in the community, taking an active interest in school, getting higher grades in math and have less behavior problems.
In order to make the whole process easier to digest, I’ve broken it down into 10 easy-to-follow steps to make it easy for you to understand the sequence of events and to get started. I can recommend some great local loan officers to help you get pre-approved. Once you know what you are able to spend on a home, I can help you find the home and negotiate a great deal for you. Call me at 202-271-5301 to Get Started.