Owning a Home is the Right Move Because of These Reasons
The economy is bad right now. Unemployment rate is high and who knows which banks will still need bailouts. Most people will say it’s crazy to buy a home right now but there are people that aren’t listening to that advice. They want to beat the rush and buy a house now. Here’s why:
The interest rates are at a record low right now! You can literally get a mortgage without much interests. For people that love leverage, this is the way to get ahead in the rat race. The only way to get it right now though is with good credit, so talk to your lender first before deciding.
So many homes are on the market these days. Therefore, sellers will compete for your money and do whatever you tell them to do. You can get a free refrigerator, or a new HDTV if you negotiate well.
When you buy a place, you no longer have to deal with your landlord! Rent increases are a thing of the past, not to mention that there are no parking problems!
Having a yard where you own is great because you can have your own vegetable garden. I know people that actually sell their crops to make money.
There are tons of tax benefits of owning real estate. Did you know that you can deduct all the mortgage interests and property taxes against your earned income? I’ve seen savings of up to ten thousand dollars per year in tax savings. This is definitely one of the major draws of owning a house.
If you sell your house and have less than $250k of capital gains, you don’t even have to report it as long as you lived in it 2 out of the last 5 years. This is the best tax treatment you can have in any investment.
Now onto the American dream. Who doesn’t want that? When you buy, the pride factor should be worth the price alone.
Once you have monthly payments, you will learn to spend less per month in order to live below your means. However, every year, you get a lot of your dollars back through tax savings so it works out to be a great savings plan.