Should I Purchase Home, with in this Crazy Market?
Should I Purchase a home, with in this crazy market?
Purchasing a home, is the biggest financial decision one will make. There are so many questions first time home buyers have, when making the decision to purchase their first home. One of the Biggest question’s is should I purchase a home right now, with where the market is at right now? Allow me to help you describe the benefits of purchasing a home, in any market.
The most important fact of purchasing a home, is weather you can afford it or not. I have helped thousands of clients purchase their home, my number 1 advise to them always is to, never over stretch your comfort zone. Stretching, and placing yourself in a uncomfortable monthly mortgage can result in some potential negative down fall. The reason I bring this up is, because the real estate market goes up and down, as long as you can afford your mortgage, in the long run your property will always appreciate. The average rate of appreciation for a home is 3%-5% nationwide.
In a simple format, I am going to list why you should buy a home now:
- 100% of the interest you pay is a tax write off. In comparison to paying rent you get ZERO dollars in tax write offs.
- You are building equity in your property. You are building equity not only when the property is appreciating, but also by paying down your principle balance on your mortgage.
- You can always, refinance your mortgage to reduce your interest rate, to reduce your monthly payment.
- You can convert your starter home, to become a investment property. That will not only build additional equity in your property, but also provide you additional cash flow to purchase another property.
- You can also depreciate your home, for further tax benefits. (consult with your tax professional)
- REAL ESTATE INVESTING, IS THE ONLY WAY TO BUILD TRUE WEALTH! History has proven that, real estate is the one asset that over the long term will always appreciate.
