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First Time Buying

To some, the idea of buying a house, condominium, cooperative, or the like is based on the conventional wisdom that everyone should own a home. Being a real estate agent in New York, I usually hear from my first time buyers, “What’s the benefit of buying rather then renting?” As a real estate agent and just recently a first-time buyer myself, I am very comfortable with working with first-time buyers. The fact that I am so comfortable with the experience makes them feel just as comfortable. I understand the buyer’s mentality because I just went through to process from the perspective of a buyer, rather then as a real estate agent. Whether it’s the emotional side of investing hard earned money, or just the basic feeling of being over-whelmed by every single document that needs to be reviewed and signed. I suggest you look at a few benefits to owning a home because owning a home isn’t for everyone

A First-Time Buyer needs to Figure Out the Benefits of owning a Home

Investment for Future

Being a first time buyer, you need to understand that a home is an investment, for you and your future. The portion of property that’s actually owned, or equity, also rises over time. What’s more, a first home often leads to a better second home, because the equity builds up and appreciation in a first home helps in the transition to a second. Where as when you rent, you just write your monthly check to the owner, and that money is gone forever.

Tax Deductions

When you own your home, you can deduct the cost of interest of the mortgage loan from your federal income taxes. When you’re a homeowner you are also able to deduct the property taxes you pay as a homeowner. The tax benefits of owning a home will help you save money each year. There are more tax benefits but you should always check with a tax professional.

Appreciation of Value

In addition, the value of your home may go up over the years. Homes are considered a safe, steady investment, with values that rise while the debt amount drops. Typically, the values appreciate at the rate of inflation, plus 1 or 2 percentage points.

Ownership

You’ll enjoy having something that is all yours. Your home is always viewed as a personal display of who you our, and a home tells the world what you love. You are able to decorate, paint, and landscape your way to a more beautiful home. When you rent, you have to get permission to make certain types of improvements. Plus it doesn’t make sense to spend thousand of dollars painting, putting in carpet, tile or window coverings when the main person who benefits is the landlord and not you.

Stability

Renters generally have no idea what they’ll be paying a few years down the line. Homeowners with fixed-rate mortgages, however, essentially have the same payment for up to 30 years. The stability also comes from the sense homeowners get of being anchored to their community.

Borrowing power

For owners who opt to stay put, equity still comes in handy. It can be used to secure a loan or obtain a line of credit, meaning more to fund home improvements or to assist with the purchasing of investment property. Cash for emergencies or big-ticket items is also an option.

In the end, sure buying and owning a home has its share of problems. There’s the down payment, closing costs, the property tax hit, and then maintaining a residence isn’t cheap. When it’s time to move, “pick up and go” is hardly a feasible option, but the rewards, in most cases, make those drawbacks seem like minor inconveniences. Owning a home is an experience to be proud about, so if you decide buying is right for you, you’ll enjoy all the benefits of homeownership. Best of luck from realestatetaxi.com

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