There are many good reasons to buy a home. Here are just 5 good financial reasons that buying a home is a good move.
Housing is a leveraged investment.
Homeownership enables you to amplify any appreciation on the home's value through a leverage factor. Example: With a 20% down payment the leverage factor is 5, with a 10% down payment, the leveage factor is 10.
You are paying for housing whether you own or rent.
It simply comes down to you are either paying your own mortgage or you are paying your landlord's mortgage.
Owning a home is a type of forced savings.
Every time you make a mortgage payment and reduce your principal balance you build equity and in effect, are building a savings account.
The tax benefits to owning a home are substantial.
Homeowners can deduct mortgage interest and property taxes from their income. Additionally, capital gains of up to $500,000 can be excluded from income when you sell your home for a gain.
Owning a home is a hedge against inflation.
Housing costs and rents have tended over most time periods to increase at or even higher than the rate of inflation which makes owning a home a smart investment.
These are just a few of the reasons why owning a home makes such good sense.
When you are ready to buy your home, call me. I can help.