The end of summer is quickly approaching and with an increase in home inventory
right now, a potential homebuyer has a huge range of home choices..
Here are some great reasons why right now is a great time to buy a
home.
Income Tax Savings
Because of income tax deductions, the government is subsidizing your
purchase of a home. All of the interest and property taxes you pay in
a given year can be deducted from your gross income to reduce your
taxable income.
Stable Monthly Housing Costs
When you rent a place to live, you can certainly expect your rent to
increase each year – or even more often. If you get a fixed rate
mortgage when you buy a home, you have the same monthly payment amount
for thirty years. Even if you get an adjustable rate mortgage, your
payment will stay within a certain range for the entire life of the
mortgage – and interest rates aren’t as volatile now as they were in
the late seventies and early eighties.
Imagine how much rent might be ten, fifteen, or even thirty years from
now? Which makes more sense?
Forced Savings
Some people are just lousy at saving money, and a house is an
automatic savings account. You accumulate savings in two ways. Every
month, a portion of your payment goes toward the principal.
Admittedly, in the early years of the mortgage, this is not much. Over
time, however, it accelerates.
Appreciation
Over the long run, your home appreciates. Average appreciation on a home is
approximately five percent, though it will vary from year to year, and
in some years may even depreciate.. Over time, history has shown that
owning a home is one of the very best financial investments.
