Real Estate can be an overwhelming topic. There is a lot of information and misinformation that can be confusing. One of our favorite resources for condensed and accurate real estate information is Realtor Magazine. We recently rediscovered some articles illustrating various topics. As a result, we are posting them in a series we are calling Real Estate Unpacked.
We will cover a multitude of topics including but not limited to:
- Top Reasons to Own a Home
- Top Reasons to Work with a Realtor
- House Hunting
- Preparing to Purchase a Home
- Tracking your Budget
- Improving your Credit Score
- Choosing a Lender
- Creative Financing
7 Reasons to Own A Home
1. 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.
Historically, real estate has had a long-term, stable growth in value. While home prices have appreciated nationally at an average annual rate between 3 and 5 percent, depending on the index used for the calculation, home value appreciation in different metro areas can appreciate at markedly different rates than the national average. Here in California, the average annual rate of increase is 4% and according to some experts and projected to rise on up to almost 7%.
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
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. The only stipulation here is you must have lived in the home for two years out of the last five years.
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.
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.
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.
Heidi and I are here to answer any questions you may have, just give us a call!