While we all know the economy has taken a hit on the real estate market, that doesn’t mean purchasing a home and putting down roots has turned into an unreachable dream. In fact, you can grasp it quite easily, and there are many benefits to doing so.
Start 2012 off right by setting new life and financial goals for yourself. If you’ve been renting and are planning to remain in Portland, then it’s definitely time for you to consider buying a house. Here are some benefits you should take into account:
• You’ll build equity. If you take out a loan, you’ll be using someone else’s money to turn your property into a piggy bank and eventually make money as your [city] home appreciates. Plus, when you sell down the road, you won’t have to share the proceeds — what’s not to like about making money with your bank’s money!
• You’ll receive tax breaks. The government supports purchasing homes by giving you significant tax breaks on your federal taxes. And when it comes time to sell, you won’t have to pay capital gains taxes either, until you hit a certain ceiling.
• You’ll be able to count on consistent payments year to year. If you can get a fixed-rate mortgage, you won’t need to worry about an annual increase in your housing payments. When you’re renting, you never know what your payments could be from lease to lease, which makes it hard to determine if your current residence will always be within your budget.
While the appreciation on a house you purchase now might not shoot up as fast as it did a decade ago, buying a home is still a wise long-term investment. Paying rent is no investment at all.
If you’re on the fence about the benefits of purchasing a Portland home in the New Year or you’d like to see what’s available, please call 503-686-5375 today or email me at fnovak@windermere.com for more information.
Links:
Buying a house
http://money.cnn.com/magazines/moneymag/money101/lesson8/index.htm
Equity
http://www.investorwords.com/5605/home_equity.html
Tax Breaks
http://www.bankrate.com/finance/money-guides/homeowner-tax-breaks-1.aspx
