Why Buy a Home?
The Benefits of Home Ownership
- Good investment
Home ownership is a highly leveraged investment that can yield substantial profit on a nominal front-end investment. A house offers leverage, and the possibility for appreciation in value. And, a home is an investment you can live in, even while it’s working for you!
- Tax benefits, such as mortgage interest deductions
The tax breaks of homeownership are substantial. Since both mortgage interest and property taxes are tax deductible, homeownership can save you significant amounts of money every year.
- Accumulation of equity
Why keep throwing your money away on rent? Why not build equity with that money, instead? Renting doesn’t protect you against rising housing prices. Rental units are just as susceptible as homes to increases in taxes, insurance, utilities and other costs. Landlords will pass these increases along to tenants.
- Control of housing costs
You decide what to spend on your home, and when to spend it. Repairs, improvements, changes-everything is up to you, and only you. Unlike renters, home owners who secure a fixed-rate loan can lock in their monthly housing costs, and make prudent investment plans knowing these expenses will not increase substantially.
- Opportunity to make improvements on the property
No more futile daydreaming about that sundeck, or new bath, or exterior paint job. You can make any improvement on your own property that you wish, and you will be increasing your home’s value in the meantime!
- Pride of ownership
There’s nothing like owning your own home. And don’t think you have to wait to buy. You’re never too young to own! Figures from the National Association of Realtors show that the average age of first-time buyers is 32 years. We can discuss the number and variety of financing options available.
The waiting game is a losing game. Don’t put off buying a home thinking that prices will come down. They aren’t likely to. For instance, from 1984 to 1994, the median price of existing homes increased from $89,400 to $145,400-a total increase of 61 percent.