Not Ready to Buy a Home? Think Again!

When considering whether or not to buy a home, a slew of benefits and drawbacks present themselves (look at our easy process of buying a home here). It is definitely a big step when one decides to bite the bullet and purchase a home – but it is definitely a step worth taking. While renters may swear by their decisions, and that 40-year-old who still lives in his mom's basement is a huge proponent of not having a mortgage, rest assured there are at least three solid reasons why you should go forward and purchase a home.

Buying A Home Is A Good Investment

Who doesn't like to make money? While owning a home is not a typical "investment" in the pure sense of the word, it is a smart financial decision that can earn you money in the long run. Owning things like stocks and bonds will presumably make you a profit, as that is what investments do and how those things function. Owning a home is a longer term, big picture investment.

If you buy smart within your means, update the house as needed, and keep it in good living condition, then your home will gain monetary value for you over the years. For every year you live in the home you increase your equity while increasing the value of your home. Buying a home to a spend some years in, is a much smarter investment than buying the new fiery red mustang – it depreciates as soon as you drive it off the lot! Spend your hard earned money where longevity pays off. You have to live somewhere, so you might as well put your money where you'll be and let it make an investment for you.

Lower your Tax Burdens

With ownership of a home come certain tax benefits. In your mortgage bill, insurance and property tax payments are doled out to a mortgage holder. When tax season rolls around you can typically take a deduction for the interest paid to your lender! And then there's the added bonus of your PMI (private mortgage insurance). While it may have seemed frustrating to have that PMI slapped on your monthly bill, if you "itemize, and the insurance contract was issued after 2006, you can deduct the amount of your PMI". And if those aren't enough, take note of this if you're in the 25% tax bracket: for every $100 you spend in mortgage interest and property taxes, you save $25. Those Benjamins will start adding up!

The House Is Yours – So Get Crackin'!

Last, but definitely not least, is that the house is yours. You can paint every wall canary yellow, redo bathrooms, make a stellar man cave, or build a giant playhouse in the backyard for your kiddos. There is a beauty in life to owning something for yourself, and feeling the ability to adjust and tinker with it as you please. You're making a long-term, smart investment by buying a home, so have fun doing what YOU want with it. Enjoy! Because I'm pretty sure the last time I checked, asking your mom permission for basement paint colors reeks of nerdy and lame.

Conclusion

So take the plunge: start investing in a home, benefit your taxes, and begin to enjoy ownership in your life as you start the journey of owning a home. There's no better time than the now! If you are convinced, connect with one of our team members to get you started!

*The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.