15 February 2018
Here are four timeless reasons purchasing a home makes dollars and sense:
Real estate is a great asset long term. Historically, renters have paid a quarter of their income in rent, but that number is now up to 29 percent nationwide and even higher in cities such as LA, Miami and New York.
Renting is simply more expensive with no tangible payoff. Homeownership helps to build generational wealth because it appreciates, and owners accumulate equity at the same time as paying off the loan.
So, purchasing a home places capital in a safe investment that is likely to grow, creating a valuable sense of security for families.
Real estate is a tangible asset (bricks and mortar we can see, touch and make memories in with our loved ones) that can always be used by the owner personally or to rent out to tenants.
Although being a landlord comes with a whole other set of factors to consider, having a property generate income for as a rental property can be a very wise decision.
It’s also important to remember the critical tax benefits that come with being a property owner.
For example, being able to write off interest rates on taxable income may very well add up to smart savings. Also, as owners of investment properties, any contractor work performed, repair, maintenance and any operating expenses will be tax deductible items.
Sometimes perspective is key. Remember hat a portion of the payment each month goes to the principal of the loan, which really can be viewed as a savings plan as equity builds in the home.
When retirement day arrives, home equity will be key for many individuals.
All four reasons aside, there is another silver lining to home purchasing: animal lovers out there can breathe a sigh of relief when purchasing a home, as they won’t have to worry about landlords who don’t allow pets anymore.
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