The Following Are Advantages Of Buying That One Should Consider:
- There are instances in which the cost of ownership can be less than renting.
- The buyer has control of the property and realizes that the acquisition of the home is a capital gain.
- The buyer has “forced” savings, which can be important when the buyer pays down the balance by a substantial amount.
- The buyer experiences tax advantages. Up to $10,000 in property taxes and interest on up to $750,000 of mortgage debt can be itemized for tax deductions. Interest on second mortgage debt of up to $100,000 is also deductible provided it is obtained to build or substantially improve the homeowner's dwelling.
- The buyer experiences personal freedom by being able to redecorate, remodel, or make improvements as they see fit.
- The buyer experiences fewer restrictions. There are a fewer number of rules that the homebuyer must abide by, which includes restrictions as far as pets, children, and noises goes.
- When mortgage payments are made on time, the homeowner can achieve a better credit rating.
Things To Consider When Buying A Home
Despite the various advantages, there are some things that buyers need to know and be aware of before choosing to purchase a home:
- The buyer is responsible for more than the mortgage payment. There are also taxes, insurance, maintenance and repairs to be concerned with. There may also be dues from the Homeowner’s Association to consider.
- The homeowner has less flexibility to move. After buying a home, there is not much flexibility when choosing a new job in another town.
- The market and home prices fluctuate. The appreciation or depreciation of the property value depends on when the home was bought, whether during a boom period or a bust period. The property may not appreciate at the rate the homeowner anticipates, leaving the homeowner with no profit when planning to sell it.
Questions? Just ask.
Estee Soto, Realtor
Premier Elite Realty