Why Rent When You Can Buy?

 
Are you unsure about becoming a homeowner?  Do you wonder about the tax incentives?  Are you worried about whether homebuying is a good investment? 
Buying a first home can be an intimidating process. But the first step is deciding if :  I want to own a home; I can afford to own a home; owning a home makes sense for me financially and emotionally.
Here are some facts that might help you take that first step towards becoming a homeowner.
 
1.  Rents increase over time
     Over the past ten years, the cost of rental housing in the U.S. has increased an avg of 3.5% per year.  If that trend continues, that means that an apartment or home renting for $1,000 per month will cost more that $1,300 per month in ten years.  If you rent the same home for ten years, the total amount you would pay for rent will equal $140,777!!!!   How CRAZY is that???
 
2.  Owning can lead to tax savings
    None of that $140,777 is returned to you, either through savings or as an investment.  Homeownership, on the other hand, often has tax advantages over renting a home, and those advantages can help you save money.  For many homeowners, part of the monthly mortgage payment "comes back to you" in tax savings.  Owning your home reduces your federal income tax liability. 
 
3.  Get an immediate tax break
    Special limited-time tax incentives currently exist.  Through April 30, 2010 qualified first-time and repeat home buyers receive a tax credit of up to $8,000 and $6,500 respectively on a home purchase.  Repeat buyers must have lived in their residence for 5 of the last 8 years.  Tax laws change, so ask you REALTOR or tax advisor for current information.
 
4.  Homeownership is NOT just about money
    There are other non-financial benefits to homeownership.  Several research studies indicate that homeownership adds to the value of communities, has positive effects on children, and even contributes to increased voter participation rates.
 
5.  Homeownership:  The American Dream
    More than two thirds of American households own their home.  They know the benefits of homeownership, from the accumulation of home equity, other financial benefits, and the pride of owning a place of their own.  They also had to take that first step of deciding "I'm ready to be a homeowner."  REALTORS are real estate professionals who are members of the National Association Of Realtors.  They abide by the Association's strict Code of Ethics and Standards of Practice.  They can help guide you to first-time homebuyer programs in your area, as well as assist you in searching for and buying your home. 

Mar.12,10 4:00 PM




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