Benefits of Buying...
Owning a home can bring financial rewards as well as a personal satisfaction that comes with knowing that you have a piece of the American dream. The financial benefits of homeownership range from the tax breaks that the owner can enjoy by writing off interest to the possible appreciation in the equity of the home over time.
Some of the financial benefits include:
Appreciation-Real estate values generally rise over a period of years.
- Tax advantages-Homeowners may deduct mortgage interest and property taxes as an expense against income, while residential investors may write off cost recovery or depreciation.
- Being a tangible asset, real estate is seen by lenders as low risk, durable and marketable. Therefore, lenders are more willing to loan a high percentage of value. This allows owners to benefit by having control over an entire high-value asset with a low initial investment or down payment.
- Real estate is marketable-it can be sold at a predicable price to a dependable group of available buyers, provided enough time is allowed to expose the property to those buyers.
- Real estate provides its owner with valuable control and management of its value. The following is a list of common motivations that inspire people to own their own homes.
•· Owning your own home provides some buyers with deep sense of security. Possibly owning a home gives you the feeling you have roots and really belong to your community.
•· You can make your own decisions about design and décor.
•· You can invest in upgrades that will not only bring you pleasure but can also add to the value of the property over time.
•· You have control over the piece of property. You are not answering to a landlord.
Usually the question is whether a person should rent or buy. There are many factors that influence this decision such as how long a person intends to say at one certain address. If there is a possibility that occupancy will last only a year or two, then it is probably advisable to rent unless you are willing to lease the property out as a rental once you move on. The only time it makes sense to buy with the intention of a quick turn around is if the property purchased was under-valued or if the real estate market is appreciating so rapidly that the increase in equity will exceed the cost of selling the property.
The decision to buy has as much to do with your personal needs as with the financial reasons that can motivate a buyer. Do the math to understand the monetary ramifications. Take time to understand your own motivations before you rush into this decision. Homeownership has its definite rewards.
Call The Romanski Group today to begin your home search. Request a Free Homebuyers Guide or Guide To Selling Your Home!
(765) 807-7121 - direct
(765) 532-6148 - cell
erinromanski@kw.com
See all listings in the Lafayette and West Lafayette MLS at http://www.romanskigroup.com/!
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