BUYING VS. RENTING:
The Benefits of Home Ownership
Trends in home prices,
personal income and mortgage rates,
combined with the tax
advantages of home ownership, make
this an excellent time to
turn your dream of homeownership into
a reality. If you’re
thinking of buying a home, you’ve probably
already asked yourself,
“Can I afford to buy?” Another good
question to ask is, “Can
I afford to continue renting?” No matter
what you’re currently
paying for rent, your total cash outlay over
a period of several years
will probably add up to a much bigger
total than you may have
realized.
MORTGAGE
RATES
Rates for conventional
30-year fixed rate mortgages remain at
historically low levels,
and increasingly popular alternate forms
of financing (FHA, VA,
and Rural Housing Loans) may make
your home even more
affordable.
HOMEOWNER
TAX ADVANTAGES
When you’re figuring out
how much you can afford to commit to
monthly mortgage
payments, don’t forget the tax advantages of
home ownership. Both
property taxes and interest payments on
a mortgage for an
owner-occupied home are currently tax-deductible.
In the early years of a
typical mortgage, all but a small
percentage of each
monthly payment is used to pay off the
interest on the loan.
This means that as a homeowner, your
annual taxable income
could be substantially reduced by
deducting the payments
you make on property taxes and yearly
mortgage interest. Ask
your CPA, attorney or tax preparer how
buying a home now would
affect your tax situation at the next
filing deadline on April
15th.
HOME
VALUE APPRECIATION
In addition to tax
advantages, you can also benefit from any
increase in the value of
your home both through appreciation
and improvements you add
for your own comfort and enjoyment.
Take a good look at your
personal financial situation in
comparison to housing
price trends and mortgage plans
available in your
community. You will probably discover that you
are closer to home
ownership than you realized. And that, in
fact, this is the time
you’ve been waiting for.
Buying a home is probably
one of the biggest investments you
will ever make. When it
is your first home, it is especially
important that you seek
qualified assistance. Your local real
estate agent or broker,
has the experience and expertise to help
you find and purchase the
home of your dreams.
