What Are The Real Benefits of Buying a Home?
I am sure that you keep hearing on the news and from your friends and family that you should buy a home, but why? If you have never owned a home before this is a very legitimate question and for those of you who have owned a home in the past you probably already know the answers.
Let's start with the basic's and then take a look at the financial aspects of it.
Reasons to Buy a Home
When you own your own home you can pretty much do what you want with it as long as the homeowners association (assuming there is one) says it's OK. You can paint the walls any color you want, you can have animals, and you don't have to worry about noisy neighbors stomping above your head. A home is relaxing and allows you to be yourself. It's not just four walls and a roof, it's your four walls and a roof.
It's not always easy to raise a family in an apartment. A house can provide the space you need so everyone can have a little room to stretch out and make their own.
Buying a home is one of the best ways to build wealth in America. The average American lives in their house for approximately 5 years. The average home appreciates between 5% and 7% per year. Based on the low average of 5% appreciation and assuming you live in your home for 5 years you will see about a 25% profit when you sell it. If you live in a $200K house that will be about $50K in 5 years!
If you have never had the benefit of owning a home then you have really missed out on the tax savings a home will provide. First of all you can write off 100% of the interest you pay on your mortgage every year! This is huge because for the first several years 90% of your payment is interest. Secondly you can homestead your property, assuming you live in the state of Texas and owner occupy your propery, which will save you approximately 14% on your property taxes every year.
There are many more reasons to own a home but the key factor here is that owning your very own home greatly outweights the thought of renting. We can help you achieve your dream of home ownership, give us a call today!