Reasons to Buy a Home

There are many benefits to owning your own home and realizing the American dream of home ownership. Some potential home buyers are skeptical and with good reason. The uncertainty regarding the real estate market (and the uncertainty of the world?s financial markets ? war and rumors of war, etc.) is real as evidenced by the recent downturn. Yes, the real estate market does move in cycles. However, it was recently reported in Florida Weekly the median price of a single family home rose 33.6% from March 2011 to March 2012. The median price rose to $124,000 in March 2012 as compared to $92,816 in March 2011. Prices are still well below the peak in 2006. All this brings me to the many good reasons to buy.

  1. Good deals are still out there and there are a lot of homes to choose from. It is still a buyer?s market ? but that can change also. It appears that home values have bottomed and are on a rebound ? at least in our area.
  2. Appreciation is the key here. With depressed home values and mortgage rates at their lowest in decades, this is a great formula for appreciation ? and opportunity for profit should you decide to sell in the future.
  3. As mentioned above, mortgage rates are +/-4% – the lowest in decades. Two years ago rates were around 6.3% – that drop would cut your monthly payment by about one-fifth.
  4. Generally speaking, vacation and primary home property taxes are fully deductible. Another great tax benefit ? you can deduct mortgage interest paid.
  5. Owning a home provides equity buildup ? a type of a forced monthly savings plan. Low interest rates often allow the borrower to opt for a shorter term loan ? typically with a lower rate ? and the opportunity to build equity much faster than with the traditional 30 year mortgage.
  6. Finally, there is the pride of homeownership and the many benefits which allow you to make a home your home. Sooner or later demand will meet supply but these will still be good reasons to buy a home.