People buy homes for many reasons; some psychological and some financial. So, let's talk about each. We've all been told since childhood that owning a home is part of the American Dream. And guess what? This just might be your chance to join millions who had the same dream. There's nothing like being in control of your surroundings which can give a sense of emotional well being. Autonomy and pride of ownership are two examples of how homeownership can be psychologically fulfilling.
Autonomy
Although you can't put it all in words, there's something special about owning your own home. Maybe it's because you have a certain amount of freedom that you don't have if you rent. For instance, if you want to paint your walls a certain color or landscape the way you prefer, you don't have to get permission from anyone. Notice I said a certain amount. If you choose to live in a housing addition in a Westfield neighborhood, you'll have to abide by the rules of the Homeowner's Association. These are rules that are spelled out in the covenants and restrictions for a particular community such as requirements associated with having pets or how high a fence can be built.
Pride of Ownership
Rather you live in a neighborhood that has an (HOA) homeowner's association, or not, owning a home can be very gratifying. Pride of ownership is a term that is often used to describe the positive feelings you'll experience as a result of maintaining your property well. As a proud owner, financial benefits are also part of the package.
Tax deductions and credits
Uncle Sam allows you to deduct property taxes, as well as, the interest charged on your mortgage loan. Interest is usually the largest portion of the loan in its earlier years. This is one of the few interest deductions still allowable. Also an $8,000 tax credit is being offered to first time home buyers who purchase a home on or after January 1, 2009 and before December 1, 2009. A tax credit is a dollar-for dollar reduction in what the taxpayer owes. The new law also defines "first-time home- buyer" as a buyer who has not owned a principal residence during the three-year period prior to purchase. For married taxpayers, the law tests the home history of both the home buyer and his/her spouse. If one does not qualify, then the married couple does not qualify.
Equity:
Equity is the value in your home above the total amount of the liens against your home. For instance, if you bought a house in the Westfield Carmel area and owe $200,000 but it is worth $250,000, you have $50,000 of equity. This can also serve as a forced savings account, depending on the market. Communities with a strong job market and close proximity to business centers will usually have real estate that's in demand. Therefore in an environment where homes appreciate, you can realize the gain and use the funds for whatever you choose.
So, why wait? If you are considering buying a home, now may be your time!
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