Own the Home, Don’t Just Pay for Someone Else’s!
Why buy a home. People buy homes for many reasons. Here are a few emotional and financial reasons.
Emotional reasons.
1) Owning a home makes for a comfortable place to relax at the end of a long day, to make memories with family & friends, and to feel secure and stable. Pride of ownership is powerful.
2) A great fit for you and your family. You can choose more of what is important to you...a large backyard for kids and pets...or do you want the freedom to lock and leave and not have yard work? We can review your needs and search for your best fit.
3) You have control over renovations, updates, and style!
Are you excited to try one of the wall treatments that you saw on Pinterest? Tired of paying an additional pet deposit for your apartment building? Or maybe you want to finally adopt that puppy or kitten you see so often online that needs a good home? Looking to add little ones and want more space, and space you can purpose and decorate just for them? You want a space for your hobbies? Crafting, photography, woodworking, music and more?
Financial reasons
1) Appreciation. Beyond pride of ownership, it's important to realize another benefit. First, real estate moves in cycles, sometimes up, sometimes down, yet over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.
2) Capital Gain Exclusion, contact your CPA with questions. but from an article By Elizabeth Weintraub in The Balance, "as long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the "over-55" rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit—subject to limitation—free from taxation."
3) Mortgage Reduction Builds Equity
Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of your first 12 months to $99,500.
4) Mortgage Interest Deduction. Somewhat in flux with the current tax plan, check with your CPA or tax specialist to see what applies to you home and loan type.
