No Matter the Market, Buying a Home is Still a Sure Bet
1.17.2023 | Category: Article
Seller’s market. Buyer’s market. With so many different names for the housing market floating around, it can be tough for new home buyers to know if the market conditions create the right climate for them to buy a home. The reality is that buying a new home is almost always a better investment than continuing to rent. Here are four reasons why buying a new home will always be a sure bet.
It’s a sound, long-term investment
In general, buying a house is often considered a good investment because it can provide a stable and secure place to live, and it can also appreciate in value over time. This means that the value of the property may increase, which can provide a financial return on the initial investment.
Additionally, owning a home can provide tax benefits and can also offer a sense of accomplishment and satisfaction. However, it's important to keep in mind that the real estate market can be unpredictable, and the decision to buy a house should be based on your individual circumstances and financial situation. It's always a good idea to do thorough research and consult with a financial advisor before making any major purchase.
You can build equity to use over time
When you buy a home, you are building equity, which is the difference between the value of the home and the amount you owe on your mortgage. As you make mortgage payments and the value of your home increases, your equity grows.
As your equity builds over time, you can tap your equity to help meet your home or financial goals. Home equity loans are a great option if you’re looking to make major improvements or pay down high-interest debt.
You can’t beat the tax benefits
Owning a home can also provide tax benefits. For example, in the United States, you may be able to claim a tax deduction for mortgage interest and property taxes. These deductions can reduce the amount of income tax that you owe, potentially resulting in a lower tax bill.
In addition, if you itemize your deductions on your tax return, you may be able to claim a deduction for the mortgage interest you pay on your primary residence and one other home. The mortgage must be a secured debt on a qualified home in which you have an ownership interest. You may also be able to claim a deduction for property taxes you pay on your primary residence and one other home.
It's important to note that these deductions are subject to income limits and other rules, and you'll need to itemize your deductions on your tax return to claim them. It's a good idea to consult with a tax professional or refer to the IRS guidelines to determine if you are eligible for these deductions and how to claim them.
There’s really no place like home
Most homeowners feel a strong sense of pride and accomplishment in owning their own home. It can provide a sense of stability and a place to put down roots. As most monthly mortgage payments stay the same over time, homeowners don’t need to worry about rising rent or unpredictable landlords.
When you own a home, you also have the freedom to make changes and improvements to the property. Feel like redoing the kitchen or changing up the bathrooms? It’s yours to do what you wish. This not only helps the home truly feel like your own but can be a great way to add value to your home and make it feel more personal.
Buying a home is a big financial commitment, so when you’re ready to make the move, be sure to contact Mutual of Omaha Mortgage. We can help you find the right mortgage loan for you so you’re sitting in your home sweet home in no time.