The housing market is on the mend in many parts of the country, but media reports about falling prices and foreclosures may still be making you hesitate before taking the plunge and buying a new home. The truth is this: There’s never been a better time to buy a home.
Low-interest rates, a great supply of houses from which to choose, and motivated sellers are just a few of the reasons why now is a great time to buy. But there are many other advantages to owning a home, rather than renting.
Here are just a few:
- The potential to build equity. Sure, there are still reports of falling prices in some parts of the nation. But, in general and over time, you are likely to build equity in your new home. Plus, if you stay in your house long enough, you will ultimately pay off your mortgage and own it outright.
- Tax savings. For many, the interest on a home mortgage, and real estate property taxes, are tax deductible. Rent is not. Check with your financial advisor for more information.
- Control. Want to remodel your home, repaint the exterior or plant some flowers? If you own your own home, you are free to do so, subject only to local zoning ordinances and homeowners association or condominium rules. If you rent, you cannot make these changes unless the landlord agrees.
- Stable housing costs. If you have a fixed rate mortgage, your principal and interest are fixed, and your payments are predictable. But a landlord can raise your rent.
- Pride of ownership. If you purchase a house, it’s yours! To many, owning a home is the very epitome of the American dream. And, with a sense of permanence, you will establish roots in your community.