5 Reasons to buy a home despite Gloomy Conditions

Do not let gloomy market predictions and dire warnings about another housing bubble keep you from buying your dream home. After years of decline, the U.S. housing market is finally showing signs of a sustained revival. According to Standard & Poor’s Schiller Home Pricing Indices, home prices are beginning to once again rise at a record pace largely as a result of low mortgage interest rates and increased confidence in the economy. If you are still on the fence, here are 5 reasons to buy a home right now:

Home ownership is a good way to save

Think of your mortgage as a forced saving plan. With each monthly mortgage payment, you are putting away a little money as equity in your home. Over time, the percentage of the mortgage payment that goes towards equity increases. So essentially, the more you stay in a your home, the more you save.

Tax deductions

As a homeowner you are eligible for several generous tax deductions. For instance, all real estate taxes and mortgage interest that you pay are fully deductible for tax purposes. With a little luck you could end up paying the same or even less per month for your home than you would if you were to rent.

Fixed housing costs

One of the biggest problems with leasing is that you end up paying a slight larger amount in monthly rent as each year passes. With many mortgages, your housing costs will remain locked over the entire term of the mortgage.

Value appreciation

The great thing about owning property is it its value will appreciate over time. Unless you happen to choose a particularly unfortunate area, the value of the home will eventually appreciate. Think of it as a protection against inflation.

Equity loans

So long as you have sufficient equity in your home, you can always take out a home equity loan to meet a financial need. Such loans typically tend to be a whole lot cheaper than other kinds of loans.

For more information on why home ownership is a great choice even amid gloomy conditions contact the investment professionals at Avis Lending.

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