Upsides of home ownership worth considering
Roseville, Calif. -The current interest rate environment is of concern but should not be the only part of the home-buying decision process.
The answer to the question, “is now the right time to buy a house” is, is the time right for you? Remember, interest rates do not take away from the benefits of buying a home.
Some benefits of owning a home
1: Long-term financial growth
Even factoring in the lowest point in the market in recent memory, the Great Recession, home values have risen over time, and have kept pace with inflation.
2: Building Equity
The down payment and the principal in the monthly mortgage payment goes straight to your equity. Rent money just goes. That equity, an interest percentage in the home, gives you a lot of flexibility.
3: Tax Savings
Savings and taxes can play together nicely. Equity is savings, and when you sell a primary residence, taxes are not typically paid on the gain. As a result, sellers can take up to $250,000 ($500,000 for a married couple) without owing taxes.
4: Deduction of Property Costs
If you itemize, some property costs can be deducted from federal taxes. Those include the annual interest on your mortgage, state and local property taxes up to $10,000, and in the year, you buy some of the fees you paid to close on the home.
5: Fixed Rate Mortgage Payment
Unlike rent, your fixed-rate mortgage payments don’t rise over the years, so relative housing costs may go down the longer the home is owned. If your earnings go up, a static mortgage payment means home the debt load becomes a smaller percentage of monthly income.
6: Improved Credit Score
Each Payment made on time helps build a positive credit score.
7: Remodeling and Improvements
One of the biggest pros of owning a home is that it can be your own. You can make improvements and changes to suit you.
Bonus Benefit: Work with a REALTOR(r)
You don’t have to go through the buying or selling process alone. A REALTOR who has the experience and expertise is available to help assess the market and guide you through the offer, negotiations, and closing.
If you or someone you know is considering buying, I would happily answer questions. I am available at the MagnumOne Realty office in Roseville at (916) 899-6571 and email at [email protected].
We specialize serving the needs of buyers and sellers of homes in the Sacramento area including Sacramento, Placer, El Dorado, Sutter and Yuba counties.
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