Stop making your landlord rich! Here are my top reasons to get out of your rental and buy your first home.
For most people, owning their first home is the ultimate dream and symbol of success. Home ownership will bring you and your family pride, joy, and security for years to come. Watch this video of my Top 6 Reasons to Buy Your First Home.
“75% of Americans say buying a home is a priority, even more so than starting a family, a career or going to college.”
Home Appreciation
Appreciation refers to the increase in the value of your property over time. For example, you may purchase your home for $500,000 and a year later your home may be worth $525,000. This increase in the value of your home is known as appreciation. This can be a result of inflation, increased job opportunities, or overall developments in your neighborhood. You can increase the appreciation even further by making home improvements that add value to your home. Appreciation rates for homes in New York have been above average for the last 10 years and New York has an annual appreciation rate of 4.75%.
First Time Homebuyer Incentives
There are many programs and incentives for first-time home buyers to make homeownership more achievable. For example, some programs allow first-time homebuyers to put down as little as a 3% downpayment on their first home. I recommend shopping around and seeing what kinds of programs and incentives different lenders can offer you before settling on a mortgage.
Lower Monthly Payments
We all want to keep more money in our pockets. Being a homeowner often means having lower monthly payments than if you were renting. This is because landlords have to inflate the monthly costs they charge tenants in order to turn a profit. With homeownership, you're not paying a premium to a landlord to live in your home, which means lower monthly payments.
Tax Benefits
Homeownership is a great tax shelter and tax rates favor homeowners. Homeowners are allowed to deduct mortgage interest and property taxes when they file tax returns each year. This can result in significant savings.
Forced Savings
Since how owners have to pay their mortgage each month, they are routinely putting money into their homes instead of squandering that money on shoes, cars, and other depreciating assets. Think of your home as one big piggy bank! The money you use to pay down your mortgage each month is building equity in your home.
Second Stream of Income
When you own your home, you have the option of renting out extra space. This can mean renting out a spare room or even renting out a garage or driveway space to commuters. This is a great way to have extra money coming in each month which you can spend, save or use to pay down your mortgage faster.
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