If you or your family are willing, able and ready to purchase a home,
then owning is definitely better than renting!
Here are some of the positive financial reasons to buying a home:
- You're paying for housing whether you own or rent.
Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord - Owning is usually a form of “forced savings”.
Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day - There are substantial tax benefits to owning.
Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain. - Owning is a hedge against inflation.
Housing costs and rents have tended over most time periods to go
up at or higher than the rate of inflation, making owning an attractive
proposition.
Benefits of Buying Now:
Trulia "Buying costs less than renting in all 100 large U.S. metros… Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally.”
Freddie Mac "One thing seems certain: we are not likely to see average 30-year fixed mortgage rates return to the historic lows experienced in 2012…Yes, rates are higher than they were a year ago – and certainly higher than two years ago. But if you look at the averages over the last four decades, today's rates remain historically low."
The bottom line, it's a great time to buy your first home!
