Top 10 Reasons to Buy a Home
Top 10 reasons to Purchase a Home
1. Affordability is better than ever.
According to the National Association of Realtors' housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
2. House prices tend to rise over time, so a house is one of the best investments you can make.
With certain exceptions, in general home prices in the U.S. have risen three percent to six percent a year for the past 20 years. That trend is likely to continue. So if you buy a home now, you’ve put your capital in a safe investment where it is likely to grow.
3. You’ll get a yearly income tax break, so more money in your pocket.
You can deduct the interest you pay on your mortgage from your taxable income. The value of this tax break depends on factors like your personal tax bracket, the size of your mortgage, the rate of interest you pay on it and how long you’ve held the mortgage. As a rule, the newer the mortgage, the greater the amount of interest you pay each month and the bigger the tax break. Therefore, recent buyers with young mortgages tend to get the greatest benefit.
4. You have a large inventory to choose from
A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture. A couple years ago, buyers would be competing for the same home. Now sellers are competing for you.
5. Builders are offering big discounts
Home builders are getting even more aggressive with their pricing. Almost every builder you run into in this market has strong incentives going on to make their product the most enticing in this market. And whereas years ago builders were not negotiable on their pricing, you see more and more they are now.
6. Interest rates are still historically low.
The lower the interest rate on your mortgage is, the lower your monthly payment is. It's that simple.
7. You can get a federal tax credit
There's now a federal credit of up to $8,000 for home buyers who haven't owned a home in at least three years. Unlike the previous credit, this is money that doesn't have to be paid back.
8. You’ll be buying a piece of real property rather than putting money in a landlord’s pocket each month.
The real cost of renting is higher than the monthly payment. There is also an opportunity cost equal to the amount you would gain by using the money to purchase a home instead. Even if the house you purchased did not appreciate in price, you would be able to sell it and recoup some of the money you put into it. In addition, you’ll have the stability and emotional security of owning your own home. No more worrying about dictatorial or negligent landlords, rent increases or the possibility your building will be sold and redeveloped or turned into a condo. You’ll be able to live in your house as long as you like, fix your monthly payments for as long as 30 years and you’ll be in charge.
9. It will be your home, your space to do with as you please.
Want to paint you walls? DO it. Want to get a dog? Okay! And you’ll be able to tear out walls, install a powder room and make any other improvements you want. Best of all, if you decide to sell, you’ll recoup at least part of the cost of the improvements. In addition, you can have a garden. This is one of the big pluses of ownership – a little piece of land you can call your own, where you can grow tomatoes or roses, barbeque, and play with your kids and pets.
10. You’ll be able to put down roots in a communityand you’ll have a greater voice in community affairs.
When you’re a homeowner, you’ll get to know your neighbors, participate in street sales, meet potential baby-sitters and play Saturday-morning touch football in the park. Renters tend to live more insular lives. In addition, local homeowners generally have more clout – individually and through ratepayer’s associations – when it comes to development proposals, school issues, changes to traffic control and routing and the like. Because renters tend to be more transient than homeowners, they have less influence on policymakers.
