Why Should I Buy a House?

Homeownership is often called "The American Dream" because of the pride that comes wirh owning a place you can call your own. You can paint your walls any color you like, you can hang anything on the walls you like, and we disagree with George Carlin's assessment: "It's just a place to put your stuff." It's way more than that.

Trends in home prices, personal income and mortgage rates, combined with the tax advantages of home ownership, make this an excellent time to turn the home of your dreams into a reality. If you're thinking of buying a home, you've probably already asked yourself "Can I afford to buy?" or "Should I afford to continue renting?" No matter what you're currently paying for rent, your total cash outlay over a period of several years will probably add up to a much higher total than you may have realized.

A substantial part of your monthly housing expenses are tax deductible. Uncle Sam encourages home ownership and rewards you with tax benefits. Both property taxes and interest payments on a mortgage for an owner-occupied home are currently tax-deductible. In the early years of a typical mortgage, all but a small percentage of each monthly payment is used to pay off the interest on the loan. This means that as a homeowner, your annual taxable income could be substantially reduced by deducting the payments you make on property taxes and yearly mortgage interest. Ask your CPA, attorney or tax preparer how buying a home now would affect your tax situation at the next filing deadline on April 15th.

In addition to tax advantgaes, appreciation is also a big factor when deciding to buy a home. Increasing property values has had an enormous impact in recent years on the health of the American economy. First time home buyers even a few years ago are finding they can sell their first home and use their increased equity to purchase a larger home as their family grows.

Take a good look at your personal financial situation in comparison to housing price trends and mortgage plans available in your community. You will probably discover that you are closer to home ownership than you realized. And that, in fact, this is the time you've been waiting for. Buying a home is probably one of the biggest investments you'll ever make and when it's your first home, it is especially important that you seek qualified assistance.