Now that we have officially said goodbye to 2018 it’s time to consider what lies ahead in the coming months. If you are renting or living with relatives, this may be the year to finally get serious about buying a home. Just imagine waking up in a place you call home, one that’s all your own. The prospect of investing in yourself and your future can be realized when you become a first time home buyer. Here are the top reasons to consider buying a home in 2019.
Buying a Home is a Long Term Investment
When you make smaller purchases such as a car, boat, or recreational equipment your investment usually depreciates over time. It’s been said that a car starts losing its value the minute you drive off the lot. After 60 or 72 months of payments the item is usually worth far less than what you initially paid for it.
When you invest in a home the value is expected to appreciate over time, gaining valuable equity as the balance of your mortgage decreases. While I don’t recommend buying a home for the sole purpose of building equity, purchasing a home is typically one of the most sound long term investments you can make.
When you purchase a home you are provide stability for yourself and the people who reside with you. Planting roots allows you to become part of a community and build lasting relationships. You eliminate the cost of moving every year or two when a lease runs out, and you are in control of where and how you live.
Purchasing a home in a desired school district or in close proximity to work can have a positive effect on the whole family. The uncertainty of changing schools when a lease is up or the possibility of a long commute due to housing changes are alleviated when you own your home.
Possible Tax Benefits
Home ownership deductions have been a longstanding incentive for singles and married couples to purchase a home. Things like mortgage interest and property taxes have been deductions enjoyed by most home owners. Federal tax laws have recently experienced one of the biggest overhauls in years, so check with your tax consultant to find out your potential tax benefits as a first time home buyer in 2019.
Some states and counties have tax incentives for home owners. Contact the county where you want to purchase to inquire about homestead exemptions and other incentives. Ask about grant programs and other initiatives offered to first time home buyers in the county as well.
Access to Equity When you Need It
As you make regularly scheduled monthly payments the mortgage balance is reduced while your home appreciates in value, creating equity. This equity may be tapped into in the form of a home equity loan for things like home improvements, college education, debt consolidation, or down payment funds to purchase a second home.
Making additional principal payments can significantly accelerate the process of building equity. Bankrate.com has biweekly and additional payment mortgage calculators to see how additional payments can reduce your mortgage balance and build equity.
A Place to Call Your Own
Don’t underestimate the satisfaction of having a place to call your very own. The sheer freedom to paint the walls any color you desire or to transform to back yard into a garden oasis can be exhilarating for many first time home buyers. It makes the process of buying a home all the more rewarding.
If you are looking to buy or sell in the Harford County area, contact me here.