Assess Your Needs
Buying a home is one of the biggest investments you will ever make. If you are a first-time home buyer, you may be wondering if it is even the right thing for you to do. Generally, there are a few good reasons to buy that you should consider:
Personal FulfillmentHome ownership is an investment in your future. It is the American Dream. Owning your home gives you a sense of pride, stability and security.
AppreciationOver the years, real estate is an investment that consistently increases in value. It’s true that real estate moves in cycles – sometimes up, sometimes down – but overall, the majority of your housing costs are protected against inflation when you own a home.
Tax AdvantagesHome ownership is a great tax shelter. Mortgage interest and property taxes are fully deductible, which can lower your taxes.
Each time you pay your mortgage, part of it is applied towards the principal balance, thereby reducing your financial obligation. As you pay down the principal, over time, your home value should go up. You can then borrow against a home’s equity to help with other financial goals, such as starting a business, home improvements, education and even retirement.