Harvard: 5 Financial Reasons to buy a new home
If you’re on the fence about purchasing one of French Brothers’ homes for sale roswell nm, a report about homeownership may help you take the leap into homeownership. Below you will find the five financial reasons to buy a new home, as reported by Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University, in his paper “The Dream Lives On: The Future of Homeownership in America.”
- Owning a home offers substantial tax benefits – Unlike renting a home, a great benefit to home ownership are the tax deductions you may qualify for. Homeowners are eligible to deduct their mortgage interest, property taxes and mortgage points each year. This can come in handy each year as April 15th comes around.
- You’re paying for housing whether your rent or own – If you’re unsure whether to purchase a new home or not, remember that at the end of the day you’re paying for housing regardless of who you’re making the check out to. However, the decision to rent or own is solely up to you. Renting a property means you’re paying toward something that doesn’t belong to you and never will. A con toward renting is that at any time your landlord can decide to sell, requiring you to have to find another home. Owning a home gives you stability and overtime it makes more sense to pay toward what you own instead of what someone else owns. Would you rather pay a landlord or pay down your principal on your dream home?
- Housing is typically one leveraged investment available – Belsky discussed that few homeowners are interested in borrowing money to purchase stocks and bonds. In addition, there are also few lenders willing to allow people to borrow money for those reasons. Homeownership allows households to use the increased value of their homes as leverage.
- Owning is a hedge against inflation – When rents and home prices begin to rise, owning a home becomes a barrier against inflation. When a homeowner has no mortgage or a fixed-rate mortgage, their housing payments are set at a fixed rate; property taxes and utility costs are the only things that float up or down. Owning a home becomes much more attractive when rent prices and housing cost go up at or higher than the inflation rate.
- Owning a home is like a forced savings – There’s no other investment like homeownership. Each payment you make toward your mortgage increases your home’s equity. You’ll gain wealth in your investment as your home appreciates in value, inadvertently being forced to save.
French Brothers Homes has beautiful homes for sale roswell nm. Consider our Tijmor community that offers a unique blend of neighborhood comfort and sophistication with single and two-story floor plans starting from $189,900. If you’re ready for an outstanding home buying and home building experience for you give Linda Kirk a call at 575-622-4188.Tags: new homes for sale roswell nm, new homes roswell nm