Home For Buyers Real Estate Glossary For Sellers

 

 

 

 

Why Buy?

The decision to buy a home can not only be one of the most important decisions of your life, it can also be a difficult one. Top 10 reasons to buy a property.

  1. Mortgage Interest Rates

    2. While mortgage rates are currently low, you will pay even less, because the interest is tax deductible.

     

  2. Income Tax

    3. Currently all the interest paid on the mortgage is tax deductible, up to a million dollars. Later interest on a second (home equity) mortgage up to $100,000 is also tax deductible. Property taxes are also tax deductible.

     

  3. First Home

    4. When you purchase your first home, you are investing in your dream home. As you make improvements and payments your home appreciates in value. The difference between your loan balance and the market value is called equity. The equity in your home can be used towards the down payment on your next home.

     

  4. Retirement

    5. Unlike endless rent payments, your mortgage is a limited time expense. When the time comes to retire, your mortgage could be paid off. Or, currently you can sell the house and keep up to $250,000 cash profit  if you are single or $500,000 if you are married, tax free, restrictions apply - see your tax consultant for details.

     

  5. It’s Yours

    6. You’re free to hang pictures, or paint. You can choose to have pets. You can refinance to lower your payment or get cash out. There is no lease to renegotiate.

     

  6. Pride of Ownership

    7. When you and your neighbors own your own homes, you have a vested interest in improving both the individual properties and the community. These improvements results in rising property values and that makes the community a more desirable place to live.

     

  7. Investment

    8. A second or vacation home can also be a good investment; it could provide extra income and act as a tax shelter.  See my Investor website at http://www.DenverInvestmentProperties.com

     

  8. Improvements

    9. Making improvements to a property you rent increases the value of the property for the landlord. However, improving your own home will increase its desirability and value.

     

  9. Equity

    10. With each mortgage payment you own a little more of the property. This builds cash for your next down payment, or for your retirement. Paying rent every month builds equity for the landlord.

     

  10. Inflation

Real estate has a history of being one of the best inflation fighting investments. Your home can appreciate in value as time goes by. This can help you to keep up with inflation. While different homes appreciate at different rates and at different times, your mortgage payment doesn’t follow.

 

A survey done by the National Association of REALTORS® of 6,000 homeowners and 2,000 renters - perhaps the largest ever of attitudes toward home ownership - showed that 76% of owners and 66% of renters considered pride of ownership an important reason for buying.

  • Dislike paying rent: Almost equal portions of owners and renters - close to 7 in 10 - said a dislike of paying rent was an important reason to buy.
  • Make home a reflection of you: Also an important reason mentioned by more than 6 in 10 owners and renters was an owner's ability to control and modify a home's features.
  • Settling down: More that 6 in 10 renters said "settling down" was an important reason to buy.
  • Good investment: 76% of owners and 69% of renters said the investment aspect of ownership was important.
  • Long-term appreciation: People consider home ownership a good investment because they view it as a long-term venture. Historically, home prices have risen at relatively steady rates. Existing home prices rose an average of 4% per year between 1980 and 1992.
  • Leverage investment: People borrow a great deal to buy a home, yet they receive the full benefits of price appreciation.
  • Source of savings: Home ownership always has and continues to comprise the single largest source of savings for American households.
  • Sacrifices are worth it: Almost 7 in 10 renters in the NAR home ownership survey said they planned to buy a home in the future. More than three-quarters of these people said they were willing to sacrifice to do that.

Reprinted in part from an article published May 24, 1993 in REALTOR NEWS®

 

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