AEM Mortgage Minute with Deanna Daughhetee

What are the Benefits of Purchasing a Home?

Tuesday, May 26, 2009

Home ownership is often recognized as being the American Dream. The pride that comes with owning a home of your own is immeasurable, but pride isn’t the only benefit. There are numerous advantages to purchasing a home, especially in the current market.

Tax Benefits
Owning a home gives you several tax benefits. One of the greatest benefits is the deductibility of the interest you pay on your mortgage. Real estate property taxes may also be tax deductible. Be sure to speak with your tax advisor to determine the deduction amount.

Additionally, as part of the American Recovery and Reinvestment Act of 2009, first time homebuyers are eligible for an $8,000 tax credit if a home is purchased by December 1, 2009.

Invest in Your Future
Buying a home is more than a purchase; it is an investment in your future. Owing a home is one of the best ways to accumulate wealth. As your home appreciates in value over time, you build equity. You can then use that equity to purchase a larger home, put children through college, for retirement, or whatever else you choose.

It is a Buyer’s Market
Inventory is high as many homes are on the market. This is great news if you are interested in purchasing a home because you will have more negotiating power and great deals can be found on homes. Many sellers are also offering seller concessions, such as paying for the closing costs or providing home warranties. With today’s low interest rates, the cost of borrowing is much less.

A home purchase is likely the largest, most important purchase you will ever make. With interest rates at record lows, an abundance of homes for sale and incentives to purchase, it is a great time to make the American Dream a reality.