Decades after the phrase “the American dream” was coined, home ownership is still a meaningful goal for many individuals and families. Buying a home is considered to be a wise investment by many because real estate typically increases in value over long periods of time, and, as the years go by, you can build equity, which is helpful during retirement and can even possibly be borrowed against. Homeowners can also receive tax benefits that renters don’t, because interest paid on a home mortgage may be tax deductible. Please consult your financial advisor or accountant for information. Finally, there’s the personal satisfaction of having a home you can call your own to share and enjoy with family and friends.
However, recent years have also shown us that values don’t always increase year to year and for some the ability to be more mobile makes sense. Current market values for homes and the extraordinarily low interest rates we’re seeing pretty well tip the scale in favor of buying today if you plan to be in the property for awhile & have stable employment. Rents have also continued to escalate making the economics of buying more lucrative for those that have no plans to move. It’s really not uncommon for renters to buy a home and pay less per month for their mortgage (including taxes & insurance) than they’d previously been paying in rent. Yes, there are additional maintenance costs owners pay that most renters avoid, but in total buying today most likely makes sense if you’re comfortable in a job & unlikely to move soon. One additional hurdle that some potential buyers face is accumulating enough money for a down payment. However, there are 100% financing programs still out there (VA & USDA) and several different types of down payment assistance programs too.
Team Woodall would be more than happy to sit down and make sure that a purchase is the best option for your circumstances. We’ll gladly provide our counsel at no charge to help you determine what makes the most sense. It may be of surprise to some since we’re REALTORS, but we don’t always say that buying is best. Whatever your choice, Team Woodall is here to help you with your real estate needs in any way.
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