One of the greatest benefits of buying a home in the current economy is the
sheer value of your purchase. A buyer’s market—like the market we’re currently
in—gives buyers more negotiating power. Here is what you should know about the
value in buying a home:
-
Regardless of the current state of the housing market, real estate has
consistently appreciated, and your home will do the same over time. The rate of
appreciation is somewhat dependent upon economic conditions and where you are
on the map, however, the bottom line is that purchasing a home is a wise
investment.
-
Building equity in your home is a fundamental reason for buying a home. Equity
is the difference between the current value of a property and the balance of
all mortgage obligations. The accumulation of equity in your home is one of the
most resourceful ways to increase your wealth.
-
Buying a home gives you the ability to take out a home equity line of credit to
access funds for paying off debt or making major purchases. You can access your
home’s equity to pay off credit card debt or medical bills, pay for school
tuition, or make home improvements.
-
You can get nice tax breaks when you buy a home. Most mortgage interest is
deductible. Real estate property taxes paid for a home are generally deducted
for income tax purposes when home owners itemize their deductions.
-
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.
-
As part of the sweeping economic stimulus package, an $8,000 home buyer tax
credit—that does not have to be repaid—will be given to new home buyers. The
enactment consists of numerous benefits for new home buyers and will help in
stimulating the housing market. The tax credit is now available until December
1, 2009 so more new home buyers can take advantage of the opportunity.
In addition to the abovementioned reasons, today’s median home prices and low
mortgage rates make buying a home now more affordable than ever. It’s plain and
simple: buying a home is an invaluable investment in your future.
