Thinking About Buying A Home This Tax Season?
Here is why you should...
1. Tax Incentives
During tax season, homeowners are entitled to deduct certain expenses related to their mortgage payments. Mortgage interest is typically deductible. In the early years of your loan, this is a sizable amount because a large portion of your mortgage payments are interest. You can deduct mortgage points, which are fees you pay to receive a lower interest rate. You can also deduct your property tax, and you might even be eligible to deduct your private mortgage insurance.
When renting, your money goes to someone else. There is no benefit to you, other than a roof over your head. When you buy, you earn appreciation as the value of your home goes up. Instead of paying rent, you will pay a mortgage and invest in future returns. For example, if you buy a house for $150,000 and five years later, it’s valued at $200,000, you have a $50,000 return on your investment.
3. Home Values Are on the Rise
Prices are expected to continue to rise this year. If you want to buy before you’re priced out of the market, now is the time to make your move.
4. Low Interest Rates
While mortgage interest rates are creeping upward, they remain at relatively low levels, especially compared to rates that were in the 8 to 9 percent range 20 years ago. Even as recently as 2007, rates were in the 6 percent range.
5. Pride of Ownership
The most satisfying of all the benefits of buying a home is the sense of gratification you feel when you relax in your own home. You can remodel and update as you please, you don’t have to rely on a landlord for repairs, and you have a sense of stability.
For more information on becoming a homeowner in 2016, please give us a call...225.627.8569