Top 5 Reasons To buy a home,
plus a few more
Like / share
The 1 minute video below explains the first 5 reasons to buy a home.
Let me throw 6 more reasons at you, and then elaborate on one of the top 5…
- Personal expression – there is only so much you can do with a rental. You can put up pictures, add a few plants, but can you really make the home your own. What if you want Quartz countertops instead of the laminate ones that are either in your rental house or apartment? Are you allowed to paint? If so, do you have to promise to return it to a neutral white / beige upon leaving? Can you install hardwoods for the carpeting? The list just goes on…you may be able to tweak some things, but the ultimate benefit is going to the landlord in the end, not you.
- Accomplishment – it is called pride in ownership. You worked your butt off to own a house – it is a major accomplishment. Embrace it!!!
- Community – You are now a part of a neighborhood. A community. Even at 50 years old, I remember the majority of my neighbors, their names, and where they lived. Having the stability to be in one place allowed myself as a child to make numerous friends and make a ton of memories.
- Capital Gains Tax – As of this writing, May 31, 2019, if you have lived in your home for 2 years, you do not have to pay taxes on $250,000 of profit in your home (your sales price – what you paid for is – any improvements you have made to the property). If you are a couple, then it goes up to $500,000. ( I am not a CPA – this information that I have provided is based on what I know and what I have seen. You should talk to a CPA to verify this.)
- Equity Loans – As you live in your home, the majority of the time, your house appreciates. This is not always the case, but look at the history or real estate and more times than not, you do appreciate. You have the ability to take out a loan against the equity in your home if you want to remodel, buy a car, send your kid(s) to college, etc…. Can you do that as a renter?
- Extra (Elaboration) – In my opinion and experience, owing a home is akin to having a forced savings account. You are going to pay rent anyway, so why not own a house and make that your piggy bank for retirement on top of your IRA / Roth? Every month that you pay your mortgage, that amount drops (slowly at first, but it progresses over time). Very few people stay in one house for their lifetime, but if you owned a $300,000 house that you have lived in for 30 years, it is very safe to say that your home is worth $500,000 after 30 years and you don’t have a mortgage now. You have $500,000 in equity. Also, you have the option to pay your house off way quicker than 30 years. Pay yourself, not a landlord.
- One More Bonus – As long as you own your home, the majority of your property taxes are tax deductible. (Again, I am not a CPA, but as a homeowner, I have deducted my property taxes for the last 22 years. Check with a CPA to verify this.)
I have 22+ years of experience helping buyers and sellers in the residential real estate market. If you have any questions, please call / text @ 303.520.8700.