The Benefits of Buying a Home

According to the Fannie Mae National Housing Survey in July of 2015, more than half of Americans think that home rental prices will increase in the next 12 months. According to experts, rental prices are rising faster than wages, and renters are spending a larger portion of their incomes on housing.  Wouldn’t it be nice to own your own place and not have to deal with the uncertainty that renting brings? Here are 8 reasons to make the investment:

  1. It is cheaper than renting – Nationally it is 35% cheaper than renting due to low mortgage rates available now.
  2. It is yours – Owning takes the landlord out of the equation, so go ahead and paint those walls purple.
  3. Begin to build wealth – The longer you own a home, the more likely it will increase in value, and you may be able to turn a profit if you decide to sell.
  4. Save money on energy improvements – If you upgrade appliances, add insulation or replace windows, you can save money on utility bills and possibly take advantage of tax benefits.
  5. Focus your spending – Owning a home means you are responsible to repairs. This encourages you to put money away to pay for them or to pay off your mortgage sooner.
  6. Generate a second income – Many homeowners who have extra space take in a renter. This can create another stream of income toward your mortgage or other expenses.
  7. If you choose a fixed mortgage, your rate won’t increase – Unless you live in a rent controlled unit, your rent is likely to increase. With a fixed mortgage, your rate doesn’t increase and when you pay it off, you don’t have to worry about mortgage payments at all.
  8. Take advantage of tax breaks – You may be able to deduct your mortgage interest payments from your taxes each year. Also, some energy-efficient improvements are tax deductible. Contact your tax professional to learn more.

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