Wednesday May 6, 2015
Is buying a home your American Dream or your biggest nightmare? Purchasing a home is one of the biggest financial decisions you will make in your life. Carefully consider the pros and cons of home ownership before you decide if it is right for you. Here are some of the top reasons to buy your dream home.
1. Pride of Ownership
- Paint the walls any color you like!
- Attach permanent fixtures without a landlord's approval.
- Give your family a sense of stability and security.
- Closely ties you to your community.
2. Appreciation and Equity Buildup
- Real Estate moves in cycles, but over the years it has consistently appreciated
- The Office of Federal Housing Enterprise Oversight tracks single family home values here: House Price Index
3. Tax Deductions and Monthly Expenses
- The interest and property tax portion of your mortgage is a tax deduction
- Your costs are predictable and more stable than renting (if you have a fixed-rate mortgage)
Home ownership is a smart move if you have reliable income, good credit and at least a 5% down payment. If you are planning on staying in your home for at least 4 years it makes more financial sense to buy your home. Realtor.com has a simple rent or buy calculator, Freddiemac.com can show you your potential tax savings, the amount you will save over time by buying, and help you determine your overall budget.