Financial Planning: 4 Reasons to Buy a House Today
Homeownership will always be a part of the American Dream. There are advantages to owning your own home (educational,health,social) that far transcend any economic impact. However, we want to look at several of the financial advantages of homeownership in today’s post.
1. Buying is Cheaper Than Renting
The results of the latestRent vs. Buy ReportfromTruliashow that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The report reveals that:
“Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation…Nationally, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.”
2. Homeownership “Forces” You to Save
According toSavingAdvice.com, homeownership is a great way to save. Their advice is quite simple:
“Homeownership is a “forced” savings account because you own the home, you have no choice – that monthly housing cost has got to be paid no matter what…Homeownership can be an outstanding way to force yourself to be more frugal in the rest of your spending so that you can save and build equity in your home.”
3. Homeownership Offers Several Tax Deductions
According to theTax Policy Center’sBriefing Book-“A citizen's guide to the fascinating (though often complex) elements of the federal Tax System”- there are several tax advantages to homeownership. Here are three:
Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage.
Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.
Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale.
4. Experts Expect Home Price Appreciation to Continue
Every quarter,Pulsenomicssurveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
Over the next five years, home prices are expected to appreciate 3.22% per year on average and to grow by 17.3% cumulatively, according toPulsenomics’ most recentHome Price Expectation Survey.
Some are afraid that home values may have already peaked. However, we believe that purchasing a home now will prove to be a sound financial decision for years to come. As Warren Buffet said,“When others are greedy, be fearful. When others are fearful, be greedy.”
Author:John Priestash Phone: 972-800-7369 Dated: May 4th 2017 Views: 3,694 About John: John is a North Texas REALTOR® who assists families and individuals sell or purchase real estate th...
View our latest blog posts in your RSS reader. Click here to access.
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
"David was a joy to work with, he kept us well informed and educated in every step. He was our biggest advocate especially with the inspection part of the process and ended up getting us our dream house in our dream location!!! He is seriously the best!!!!! Thanks David for everything we couldn't be happier!"