Buying a Home is better than Paying Rent in Tigard, Oregon.
Even though the news is filled with the dire straights of the current housing market, buying a home in Tigard is still a smart thing to do. Buying your own home is part of the "American Dream" and one of the smartest financial decisions you will ever make. It is the foundation of building personal wealth and one of the safest investments you will ever make. For an individual or a family, a home is generally the most significant asset owned and serves as their primary wealth-building vehicle.
Home ownership builds wealth in many ways. You know that you are have to pay to live somewhere. The rent you are paying is building someone else's wealth, not your's. This is wasted money that is providing you no benefit. Put this money to work so it is benefiting you and your family. You can pass your home down to your children, and their children, and create security for generations.
There are tax benefits for owning your own home. Being able to deduct mortgage interest, closing costs, mortgage insurance, and property taxes, reduces your taxable income. These tax savings reduce the actual cost of owning a home.
Owning your own home gets appreciation working for you. This is the major benefit of owning a home. Appreciation is the annual rate an asset increases in value. Tigard Oregon currently has stronger appreciation rate than most of the country partly because of the Urban Growth Boundary. Basically it is a legal separation between urban land and rural land. Land inside the UGB becomes more expensive. The UGB is a major reason why our real estate prices have remained strong. Example: At a modest 4% appreciation rate a $275,000. house after the first year would be worth $286,000. After the second year $297,400. After the third year $309,296. This is a very powerful way to increase personal wealth.
Home ownership is often characterized as the "American Dream." Home ownership has significant social and economic advantages for individuals and our communities. For communities, studies have shown that higher levels of home ownership stabilizes neighborhoods, reduces crime, increases civic participation, and improves local school performance.
To compare the costs of renting to buying, this is one of the best Rent vs. Buy calculators I have found to do the comparison. It will open your eyes to what is possible.
Don't let the current housing market discourage you from buying a home. A smart person with decent credit can find a good deal on a house right now.
Wayne B. Pruner is a Realtor® with Oregon First, who works in the Tigard, Oregon area. He is ready to help you with all your real estate needs. His phone number is, 503-891-0795. Here are links to his real estate website and his real estate blog.