5 Benefits of Buying a Home
- Tax Advantage: "When tax time rolls around, homeowners are entitled to deduct certain expenses related to their mortgage payments and owning a home. Mortgage interest is typically deductible. In the early years of your loan, this is a sizable amount because a large portion of your mortgage payment is interest. You can deduct mortgage points, which are fees you pay to receive a lower interest rate. You can also deduct your property tax, and you might be eligible to deduct your private mortgage insurance."
- Appreciation: "When you rent, your money goes to someone else. There's no benefit to you other than a roof over your head. when you buy, you earn appreciation as the value of your home goes up. Instead of paying rent, you'll pay a mortgage and invest in future returns. For example , If you buy a house for $150,000 and five years later, it's valued at $200,000, you have a $50,000 return on your investment."
- Catching an upswing in home values: Although the increase in home prices nationally slowed last year, prices are expected to continue to rise this year. "If you want to buy before you're priced out of the market, now is the time to make your move," Rhonda says.
- Low interest rates: "while mortgage interest rates are creeping upward, they remain at relatively low levels, especially compared to rates that were in the 8 to 9 percent range 20 years ago. Even as recently as 2007, rates were in the 6 percent range.
- Pride of ownership: "Perhaps the most satisfying of all the benefits of buying a home is the sense of gratification you feel when you relax in your own home. You can remodel and update as you please, you don't have to rely on a landlord for repairs, and you have the sense of stability."