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Why Buying Now is a Great Idea!
Real Estate Update with Cheryl Marlow
770 KKOB AM’s Residential Real Estate Specialist!
For all of the doom and gloom that’s been going around about our real estate market, I have to say that it generally still pays to own your own home. Even though the market might not be going exactly how we want it to, you have to realize that the American Dream is still a safe bet, and that includes owning a home!
Owning your own home can help you in the long-run because real estate is what we like to call a ‘leveraged investment’. What this means is that you can put 10% down and that 10% could eventually produce a 1,000% return if the price of your home merely doubles. And, history has shown that homes have appreciated by an average of 4% per year dating all the way back to World War II. Since then, home ownership has helped against inflation and provided many tax benefits to homeowners. But, you have to be careful because some people can run into problems and get burned in the long-run if they don’t know what they’re doing.
Some extra benefits that come with owning a home can be from tax breaks. Generally, your biggest tax break is reflected in the house payment that you make each month and this mortgage interest is usually completely tax-deductible! When you sell your primary residence, you can have up to a $250,000 gain tax free. That gain could be up to $500,000 for married couples! And your tax break days may be looking even brighter if you’re able to swing a vacation home on the lake because mortgage interest on a second home is FULLY TAX DEDUCTIBLE!
So, to be on your way to home ownership you should always think of the three C’s! Contemplation, Comparison and Commitment! You have to decide whether or not you’re ready to actually buy a home, a more expensive home or a second home. This includes being financially, emotionally and psychologically ready. Once you decide that you’re ready, it’s essential that you find an experienced realtor, like myself of course, to help you to compare properties that you like and decide on a home that fits you and your family. Finally, you want to commit to buying the home and making it as smooth of a process as possible. It will make things easier on yourself and everyone else involved if you’re a committed buyer who is motivated to move forward!
Cheryl Marlow
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