You may be thinking that anyone who still wants to buy a home in our current economic state is just plain crazy! But you’ll be surprised to know that there are still many benefits to buying a home.  Here are four reasons it’s not so crazy to buy a home right now.

Let’s make a deal!

This is a buyer’s market now more than ever. House prices have come down about 30% from their peak, according to Standard & Poor’s Case-Shiller Index. This means mortgages are much more affordable. This also makes negotiating with builders and home sellers easier, because they’ll be more willing to go lower on pricing or throw in more incentives to make the sale. So as a homebuyer you have the upper hand, and the ball is in your court.

Deductions, just do it.

If you itemize at tax time, you have the benefit of deducting the interest paid on your mortgage throughout the year. And interest is the largest part of your mortgage payment so that should make your wallet happy. In addition, first home property taxes paid are fully deductible for income tax purposes in most states.

Your money, your rules.

The real cost of renting is higher than the monthly payment. It’s estimated that 49% of all American renters are paying out more in rent than they can afford, and approximately 26% of all renters in the United States spend more than half their pre-tax income on rent according to www.realtor.org. Even if the house you purchase doesn’t appreciate in price, you can still sell it, and get back some of the money you put into it. The bottom line is when you buy, you build towards appreciation. Why would you want to pay someone else’s mortgage when you can pay your own?

Privacy please.

Want to blast loud music or walk around in your skivvies? It’s your house so why not? Houses are insulated, isolated, and apart from their neighboring properties. If you own a house, you have more privacy than living in an apartment. So what you do in your house  is your business.

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This is filed under Home Buying.


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