Are you ready to buy a home?
Choosing to stop renting can be a scary decision. Home ownership has many benefits, but it comes with a large financial responsibility. At Real Sharp Realty one of our specialties is helping our buyer clients navigate the transition from renting to owning. If you think you may be ready to buy, we are here to help. Below are some important things to consider when making the decision to buy:
When you own a home, you may take advantage of various tax benefits only available to home owners who itemize their tax returns. Starting in 2018, you may deduct the interest you pay on mortgage debt up to $750,000. You can deduct up to $10,000 for a combination of property taxes, and state and local income taxes. In addition to annual tax benefits, the capital gains exclusion may make the equity earned in the real estate market more valuable than gains earned through other investments.
Appreciation is a primary motivator to enter the housing market. The National Association of Realtors estimates that home values rise, on average, 4.5% per year nationally. That means that your $100,000 home may be worth $104,500 the next year, $109,202.5 the third year, etc. As with any investment, appreciation isn’t certain or guaranteed. One of the many advantages to working with a professional agent is learning what properties may have less vulnerability to down markets.
Building wealth is another major benefit of home ownership. Through principal reduction, home owners build equity in their homes that they can leverage in the future.
Maintenance costs are one expense that renters need to budget for when transitioning from renting to owning. Mechanical systems and cosmetic elements in homes deteriorate over time and require repair and replacement. Making sure that you have money to invest back into your home is essential in maintaining or increasing the value of your investment.
Quick relocation can be hindered by home ownership. Renters can often quickly and easily move when their lease expires. However, from the time you decide to sell your home, it will frequently take a minimum of 60 days before you are ready to move to your next location.
Pride of ownership is one of the most enjoyable benefits to owning a home. The ability to create a space that reflects your personal taste and interests can be difficult or impossible to do in a rental unit. Taking creative control of your home is the cornerstone of the American Dream!
When you are ready to transition from renting to owning, Real Sharp Realty is ready to help you maximize your real estate investment.