If you’re like a lot of first time home buyers, you’ve probably had a world of advice handed down to you over the last few year from friends, family, co-workers—even television reporters—on the merits of cashing in on the First Time Home Buyer Tax Credit. Now that it’s over you may be wondering, “Is it still worth it?”
The answer is a resounding “YES!” Here’s why: As you can see, even without the tax credit, buying a home is still a smart investment which can reap big rewards for you and your family. Everyone is different, as is every situation. So don’t “guess” at the best decisions for you. Call Team Wasserman for real answers, rent vs. buying analysis, mortgage rate information and more. That way, whatever you decide to do, you’ll have the peace of mind in knowing you have all the up-to-the-minute information you need to weigh out all of your options.
It’s not the monetary reason, maybe not even a rational one – but it’s most definitely an emotional experience to purchase your own little corner of the world. No longer tied to the rules and decisions of a landlord or fret about whether or not your lease will get renewed. You’ve got the pride in knowing you’ve got a home of your own to make memories with your family and begin building wealth.
Instead of growing your landlord’s wealth, your monthly payment builds your own family nest egg. This not only begins the process of building wealth and forcing savings, but also puts a “safety net” in place for those unexpected emergencies that life tends to throw our way. As a homeowner, you have the ability to set up a “home equity line of credit” ahead of time which can cover you when times are tough.
While it’s true you’re no longer going to get a big “bonus” check from Uncle Sam, you will be able to deduct mortgage interest and property tax from your annual tax return. It can literally save you hundreds every month! You can also consider another big tax break in terms of capital gains; if you sell your home in the future you can receive up to $250,000 as a single person or $500,000 as a married couple in appreciation tax-free.
The value of your home will increase at the rate of inflation plus additional points. Let’s give you an example: A $235k home becomes worth $485k at 3% appreciation after 30 years, but it becomes worth a whopping $649k at 4% appreciation. One percentage point makes quite a difference! That’s money you’d never “appreciate” just renting a home!
Today’s low interest rates and still low sales prices coupled with motivated builders and sellers make now a great time to “invest” in your family’s future. Buying a home today will allow you to grow equity, build credit and create financial stability.
Mark Wasserman - Give me a call today at 760.397.3270 or email me at email@example.com
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