Michael K. Joseph, Owner of The B Spot Real Estate & Investment LLC
Benefits of Home Ownership
One of the biggest decisions that anyone can make in their life is to purchase a home. Some home buyers may wonder if their decision to purchase a home is the right decision for them since the average person changes their mind regarding their decision every five to seven years. While taking this information into consideration, many people do wonder if purchasing a home is the best option for them. However, there are many advantages to purchasing a home. The best way to know whether buying or renting is the better situation; the individual must look at their situation in order to make the right decision.
Advantages of Buying a home:
One of the major perks of buying a home is you get good tax breaks. You can receive up to $10,000 in property taxes and interest on up to $750,000 of mortgage debt. You can also avoid capital gains tax, if the home is your primary residence for two of the five years prior to selling. Buyers also experience personal freedom by being able to redecorate, remodel, or make improvements as they see fit and over time can improve your credit rating. Not to mention, the money you spend on a mortgage goes toward your own mortgage versus your landlords!
Things to Consider When Buying a Home:
Despite the various advantages, there are some things that buyers need to know and be aware of before choosing to purchase a home:
The buyer is responsible for more than the mortgage payment. There are also taxes, insurance, maintenance and repairs to be concerned with. There may also be dues from the Homeowner’s Association to consider.
The homeowner has less flexibility to move. After buying a home, there is not much flexibility when choosing a new job in another town. Also, the market and home prices fluctuate. The appreciation or depreciation of the property value depends on when the home was bought, whether during a boom period or a bust period. The property may not appreciate at the rate the homeowner anticipates, leaving the homeowner with no profit when planning to sell it.
There are two factors to consider in this equation:
How much the homeowner expects the home to appreciate and how long the homeowner plans to stay. A homebuyer usually needs to stay in the home for at least three years to make up the costs. Staying for five years is a more preferable timeframe.
Get Pre-Approved today with one of our lending partners.
Michael K. Joseph, Owner of The B Spot Real Estate & Investment LLC
Call us at 832-265-7791 or visit our site at https://www.michaelkjoseph.com for more information!