With the financial crisis still being played out, many people are scared to buy a home. However, there are many people selecting their homes right now and buying them up still. Why? Here are some reasons why.
The interest rates are at a record low right now! You can literally get a mortgage without much interests. For people that love leverage, this is the way to get ahead in the rat race. The only way to get it right now though is with good credit, so talk to your lender first before deciding.
So many homes are on the market these days. Therefore, sellers will compete for your money and do whatever you tell them to do. You can get a free refrigerator, or a new HDTV if you negotiate well.
You don’t have to be a tenant forever. With your own house, there are no more increases in your monthly rent and there is for sure spaces for your cars.
If you are renting, chances are that there are no yard. If your wife is like mine, she will want to plant something when she gets that house!
Having mortgage payments and property taxes mean lots of tax deductions. With a house, you can save a lot of money by saving on taxes. You also get a huge refund every year which you can save up to boost your savings.
Capital gains from selling houses are also great for home owners. If you lived in your house for the last 2 years, you won’t have to report a capital gain if you sell your house for up to $250,000 ($500,000 if you and your wife owns it and is filing jointly).
Everyone wants a piece of the American dream. Once you sign on that dotted line, you will feel great because you will seem to have elevated to another level of personal achievement.
Having a mortgage also helps you spend less because you seem to have a big payment. If you can save all the tax savings every year, you will be in good shape (in a savings perspective).