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WHY
BUY?
1) IT WILL
BE YOURS AND YOURS ALONE: Owning your own home frees you
from the restrictions that renters experience. You can paint the
walls the color you like ... hammer a nail where you want ... all without
hassle from a landlord!
2) LIFE
STYLE: Homeowners are a different breed. When you
live in a neighborhood or complex that is basically owner occupied,
your neighbors, like you, have invested in and care about their property.
They are willing to spend more time, effort, and money to improve the property
and the community, which in turn improves the value of the property!
3) EQUITY
BUILD-UP: Once you have made them, rental payments are
gone. But with each mortgage payment you are buying something tangible
and building up equity. The longer you own your home, the greater
will be your equity!
4) KEEP
UP WITH INFLATION: A home is an investment that
helps you keep up with inflation. Not all homes appreciate in value
at the same rate, and some years are better than others, but real estate
historically has kept pace and usually has exceeded the rate of inflation!
5) INCOME
TAX BENEFITS: All interest paid on a mortgage is
deductible for state and federal income tax purposes. Moreover, sate
and local property taxes also are deductible. Generally speaking,
90% to 95% of your house payment is income tax deductible during the early
years of the mortgage!
6) PAYBACK
ON IMPROVEMENTS: A renter who makes improvements
on the house they occupy enjoys no financial benefits from them when they
relocate. As a homeowner, you can recover all or part of the cost
of the improvements when you sell your home!
7) TRADE-UP
VALUE: Even if your first purchase isn't your "dream
home" you will be working your way up to it when you buy any home.
With appreciation and possibly some improvements, you are building equity
that, one day, will make your dream home a reality!
8) SECURITY
FOR RETIREMENT: Unlike rent, which goes on forever,
the mortgage on your home will someday be paid, providing you with "rent
free" living for your retirement.
9) INVESTMENT
PROPERTY: For some homeowners, second houses or
condominiums are proving to be good investments as income producers or
as tax shelters, or both. As the owner of investment property you
can enjoy not only extra income but also additional tax benefits from the
depreciation allowance which is provided under present tax laws!
10) INTEREST
RATES MAY BE DECEIVING: Because the interest is
tax deductible, the "effective" interest rate is lower than the note rate.
For example, a mortgage interest rate of 12% becomes an "effective rate"
of 8% for a married couple with taxable income of $25,000 after taking
the tax benefits into account. |
