Is now the time to buy? What benefits does homeownership confer?
Given our crazy real estate market, is now the right time to buy a home?
If you’re looking to stay in the house long term, then yes, now is a great time to purchase. If you’re currently renting, you’re paying someone else’s mortgage and huge amounts to the government in taxes.
When you own a home, you benefit in three different ways: you get to write off your closing costs when you close escrow on your primary residence, you can write off the property taxes you pay throughout the year, and you can claim the mortgage interest that you pay. Combined, those write-offs add up to a sizable amount. Instead of using that money for rent, you can put it toward your mortgage.
Homeownership provides a range of financial and other benefits that renters simply can’t take advantage of.
Homeownership also helps you build wealth. If, you bought a $600,000 property, then every single time you pay your mortgage, your principal balance goes down and your equity goes up. The longer you own the property, the more equity you’ll gain. Further still, your monthly payment and interest rate are locked in when you own a home. Renters are subject to rate hikes, which can sometimes extend beyond their means, forcing them to move somewhere they can more easily afford.
Another perk of homeownership is the fact that you can make alterations and improvements to the property without having to ask permission. When you rent from someone else, you’re bound to the property owner’s rules.
Owning property also gives you mobility. If you decide you want to move a few years down the line, you can always sell it and use the equity you’ve gained to move to a different property.
In the end, rents are currently very expensive, and they’re only set to rise as time goes on. Take this opportunity to become a homeowner with much more control over your personal wealth and property. If you have any questions about buying a home in this market, don’t hesitate to reach out to me. I’d love to help you.