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:
The interest rates are at a record low right now! You can literally get a mortgage without much interests. For people that love leverage, this is the way to get ahead in the rat race. The only way to get it right now though is with good credit, so talk to your lender first before deciding.
So many homes are on the market these days. Therefore, sellers will compete for your money and do whatever you tell them to do. You can get a free refrigerator, or a new HDTV if you negotiate well.
No more landlords if you aren’t a tenant anymore. You also don’t have to deal with the yearly rent increases that those evil landlords seem to always make you pay. You are also guaranteed parking space when you own.
Having a yard where you own is great because you can have your own vegetable garden. I know people that actually sell their crops to make money.
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.
When you buy a house, you finally get that ownership feeling that renting will never give you. You finally own a piece of the American dream. You can be proud about the new possession that you have.
Monthly payments will be big but that means you will learn to spend less. This is an automatic savings program because you will get a huge tax refund, in which case you can save it all up.
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