Here are the top 10 reasons to buy a home. You will probably have more to add to this list. Let me know what they are!
- Quality of Life – Home ownership is part of a better quality of life for most buyers. The quality of our living situation directly impacts how we feel.
- Tax Deductions – Buying a home helps you with tax deductions for both mortgage interest and property taxes. See your CPA for other advantages you may qualify for.
- Spend Money to Make Money – Home ownership and the potential for appreciation means that ultimately you have the opportunity to get a return on your investment.
- Deferred Gain and Capital Gain Treatment – A homeowner can exclude up to $500,000 of capital gain tax if married and filing jointly or up to $250,000 if single or filing separately when you sell your home. The home must have been the taxpayer’s principal resident for the previous two years.
- Principal Accumulation – As a homeowner, a portion of each amortized mortgage payment typically goes to principal, which in the long run is an investment.
- It’s The American Dream – Owning a home is THE American Dream. I work with many first time home-buyers; and it truly is a dream come true for them.
Independence – For many homeowners, one of the greatest freedoms is acquired through home ownership. They can get rid of their landlord and are no longer surrounded by neighbors in an apartment with thin walls. The freedom to do whatever they wish with their homes is a big incentive for many new homeowners.
- Leverage – At the current interest rates, you can put your money to work somewhere else. And with 0% down and other low-down loan programs, you can leverage your cash even more.
- Why rent when you can own? The real cost of renting at $700 per month with 6% rental increase per year means you will pay $110,719 over 10 years. Just think, you could almost pay off a home for that amount!
- Build wealth – You may want to consider buying rental properties for longer-term investments and future returns.
See more articles in my Home Buying Guide:
Must-Have Online Research Tools Every Buyer Needs
The 8 Most Important People You Need to Know in Real Estate
10 Critical Questions to ask your Realtor
6 Tips when Purchasing a Home
Financing and the Costs to Buy a Home
10 Commandments when Applying for your Loan
How Buyers Can Negotiate Successfully in a Seller’s Market