Tuesday, April 11, 2006

It Pays to Buy

Renters often find their monthly housing expense going up after they purchase a home. Yet most agree that buying a house is a wise decision. Here are some reasons why:

1. Rent always increases. If rent increases only 3% per year a $1000 rent will increase to $1200 over 5 years. Home owners can enjoy stable
payments that do not rise over time. As your income rises you home payments will become more affordable over time.

2. You have nothing to show for you rent. At the end of a half dozen years a renter has nothing to show for the $60,000 or $70,000 they have paid in rent. Homeowners on the other hand not only payoff their mortgage with each monthly payment but also grow their wealth as the house value rises over those years.

3. Real estate goes up in value. Average home prices have consistently risen for decades. One leading housing economist forecast values will increase 6.5% annually for the next decade.

4. Homeowners gain tax breaks. Mortgage interest is tax-deductible which lowers your income tax.

5. Owning a home brightens your life. Our homes mean a lot to us. We can do what we want with our home because it is ours.

6. Buying a home is easier than ever. With low interest rates and a variety of loan programs that can meet anyone’s needs now is the time to buy. Most experts predict rates will rise as the economy grows. Housing prices will increase so waiting to buy will cost you money.

Joe King - Loan Originator
The Mortgage Company Inc.
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