The economy is in dire condition right now but there are still many people buying property as you read this article. You might think that they are insane but trust me when I tell you that they are just doing something that make sense to them. Here are at least 10 reasons why buying a property is a good choice in this market.
The interest rates are at a record low right now! You can literally get a mortgage without much interests. For people that love leverage, this is the way to get ahead in the rat race. The only way to get it right now though is with good credit, so talk to your lender first before deciding.
The ultra high inventory has created an environment where you can really wait until you find that perfect house. Don't like that kitchen, wait. Want a bigger bedroom, find another one!
You don't have to be a tenant forever. With your own house, there are no more increases in your monthly rent and there is for sure spaces for your cars.
If you own, for sure you will have a yard. My wife loves planting and this is actually the main reason why she wanted a house.
Tax deductions are probably one of the major benefit of owning a house. Whether it's property taxes or the interest on the mortgage payment, it can be used to deduct taxes.
IRS really likes people buying houses because anyone can have $250k of capital gains tax free. In fact, you don't even need to report it if you lived in the house for at least 2 years (the limit is actually $500k if you and your wife both own the property and file taxes jointly).
Everyone wants a piece of the American dream. Once you sign on that dotted line, you will feel great because you will seem to have elevated to another level of personal achievement.
Once you have monthly payments, you will learn to spend less per month in order to live below your means. However, every year, you get a lot of your dollars back through tax savings so it works out to be a great savings plan.
The interest rates are at a record low right now! You can literally get a mortgage without much interests. For people that love leverage, this is the way to get ahead in the rat race. The only way to get it right now though is with good credit, so talk to your lender first before deciding.
The ultra high inventory has created an environment where you can really wait until you find that perfect house. Don't like that kitchen, wait. Want a bigger bedroom, find another one!
You don't have to be a tenant forever. With your own house, there are no more increases in your monthly rent and there is for sure spaces for your cars.
If you own, for sure you will have a yard. My wife loves planting and this is actually the main reason why she wanted a house.
Tax deductions are probably one of the major benefit of owning a house. Whether it's property taxes or the interest on the mortgage payment, it can be used to deduct taxes.
IRS really likes people buying houses because anyone can have $250k of capital gains tax free. In fact, you don't even need to report it if you lived in the house for at least 2 years (the limit is actually $500k if you and your wife both own the property and file taxes jointly).
Everyone wants a piece of the American dream. Once you sign on that dotted line, you will feel great because you will seem to have elevated to another level of personal achievement.
Once you have monthly payments, you will learn to spend less per month in order to live below your means. However, every year, you get a lot of your dollars back through tax savings so it works out to be a great savings plan.
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Saving money isn't easy, but Personal Finance Blog by MoneyNing has wrote a great piece on 50 Ways to Budget Travel and Save Money to help you.
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