The economy is bad right now. Unemployment rate is high and who knows which banks will still need bailouts. Most people will say it's crazy to buy a home right now but there are people that aren't listening to that advice. They want to beat the rush and buy a house now. Here's why:
Mortgage rates are so low currently. In fact, it is at a historic low as the government is doing everything to lower that rate. If you have good credit, now is the time to buy because you can literally get good leverage in your investment!
There are lots of homes for sale right now. This means that you can take your time to look for the house that you can't live without. Either that or you can ask the seller to fix everything to your liking before you will sign the lease.
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.
There are tons of tax benefits of owning real estate. Did you know that you can deduct all the mortgage interests and property taxes against your earned income? I've seen savings of up to ten thousand dollars per year in tax savings. This is definitely one of the major draws of owning a house.
If you sell your house and have less than $250k of capital gains, you don't even have to report it as long as you lived in it 2 out of the last 5 years. This is the best tax treatment you can have in any investment.
Now onto the American dream. Who doesn't want that? When you buy, the pride factor should be worth the price alone.
Having a mortgage also helps you spend less because you seem to have a big payment. If you can save all the tax savings every year, you will be in good shape (in a savings perspective).
Mortgage rates are so low currently. In fact, it is at a historic low as the government is doing everything to lower that rate. If you have good credit, now is the time to buy because you can literally get good leverage in your investment!
There are lots of homes for sale right now. This means that you can take your time to look for the house that you can't live without. Either that or you can ask the seller to fix everything to your liking before you will sign the lease.
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.
There are tons of tax benefits of owning real estate. Did you know that you can deduct all the mortgage interests and property taxes against your earned income? I've seen savings of up to ten thousand dollars per year in tax savings. This is definitely one of the major draws of owning a house.
If you sell your house and have less than $250k of capital gains, you don't even have to report it as long as you lived in it 2 out of the last 5 years. This is the best tax treatment you can have in any investment.
Now onto the American dream. Who doesn't want that? When you buy, the pride factor should be worth the price alone.
Having a mortgage also helps you spend less because you seem to have a big payment. If you can save all the tax savings every year, you will be in good shape (in a savings perspective).
About the Author:
The secrets of saving money and budget traveling is revealed! Take advantage of the free report from Personal Finance Blog by MoneyNing
0 comments
Post a Comment