If you are like most home buyers, you probably have friends, family and coworkers encouraging you to buy a home. However, you may still be wondering if buying a home is the right thing to do. Well, having reservations is normal, and getting educated is the right move (pun intended)! The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are seven good reasons why you should buy a home.
- Tax benefits: The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.
- Appreciation: Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®. The 2007-2010 housing crisis has caused some to question the long-term value of real estate, but values were up 7.0 percent on a cumulative basis in the 2010-2020 decade. In addition, the number of U.S. households is expected to rise 10 to 15 percent over the next decade 2020-2030, creating continued high demand for housing.
- Equity: Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
- Savings: Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
- Predictability: Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will likely increase.
- Freedom: The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.
- Stability: Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.