Why Buy A Home?
The sale and purchase of residential real estate is a major industry in the United States, yet it is interesting to note that there are very few, if any, colleges or universities which offer a course in residential property ownership. In fact there is very little formal training of any kind available which deals specifically with residential property purchases for the private individual. As a result of the apparent lack of formal training in this area, many people are unaware of the tremendous opportunities and subsequent benefits of home ownership.
The primary reason why so many people invest in real estate is not extraordinarily complex. In fact the strategy is quite simple when you consider the historical data. Historically, real estate has always shown significant appreciation over time. So whether you are a low level wage earner, a recent college graduate, or a highly paid professional, you can and should own your own home. Once you buy your first home you earn the distinction of an astute investor. The very astute investor, however, may become obscenely wealthy over short periods of time in the real estate market.
When it comes to real estate, no matter what your current financial status is, you can become a very astute investor relative to owning a home. Donald Trump, is an excellent example of a very astute real estate investor and most of us are familiar to some degree, with his success in the real estate market. The beauty in purchasing real estate is that each piece of property is an entity. Nowhere else on earth can a particular piece of property be except where it is. Structures on a given piece of property can be built, torn down, renovated or replaced but the property remains. Will Rogers once said, "buy land, they ain't making no more of it."
The formula for success in real estate is relatively simple; you buy low and sell high. It is our contention that the acquisition of as much real estate as possible should be the goal of anyone who is in pursuit of financial security. Below are six great reasons why you should own your own home:
1. You have to pay for shelter. Why not pay yourself instead of your landlord. Every time you make a payment on property you own, you derive tremendous financial benefits. First of all you develop equity. Equity is the difference above what you paid for property and what the property can currently be sold for. While this is not the only way to develop equity, it beats the heck out of paying your landlord and getting no financial benefit. click here for comparison calculator Equity is the difference above what you paid for property and what the property can currently be sold for. While this is not the only way to develop equity, it beats the heck out of paying your landlord and getting no financial benefit.
2. In most cases, there is a tremendous income tax benefit associated with homeownership. The way this works is that homeowners are able to deduct the interest paid on a mortgage loan from their total income. As a result, very often homeowners receive a much higher income tax refund from Uncle Sam, while renters that may have made payments in similar amounts to their landlords derive no such benefit.
3. When you own your home instead of renting, you make the rules. You decide what your home will look like. You decide whether or not you can have pets. You decide what you can hang on the walls. You decide what type of flooring you can have. You decide whether or not you can put a fence up. By now you get the point and while we have only discussed a few positive aspects of homeownership, the benefits relative to your control of your personal environment are awesome.
4. In most cases landlords will impose a late fee for any rent payments made more than ten days late and in addition, many landlords will commence eviction proceedings after the tenth day. Most lenders will allow mortgage payments to be made during the first fifteen days of the month which gives homeowners greater flexibility to make payments for shelter.
5. When you rent a home, you are required to keep that home in good condition. Very often renters will adhere to that requirement because they want to live in a nice place. Frequently renters will incur out-of-pocket expenses that will never be recovered. It’s a great deal for your landlord but a financial tragedy for the renter. When you own your own home, any expenses incurred to properly maintain and/or improve your property go directly to the homeowner in equity. And while equity is often not realized until you borrow on or sell your property, it’s a far cry from receiving nothing for being a good tenant.
6. You significantly improve your credit rating by purchasing a home. Please be aware of the the fact that many financial opportunities are only available to homeowners. This may mean better interest rates on auto loans, credit cards or other finance charges.
Now that you understand why you should own your own home, let us show you how and answer some questions you may have. click here
