5 Compelling Reasons To Stop Waiting and Buy a House Now.
Stop wondering if being a homeowner has its benefits...here are 5 compelling reasons to buy now. Don't wait to be a home owner.
If you don't think you qualify for a home loan but you have not checked with a local experienced Lender, CALL AND ASK. You might be surprised what help you can get.
Buying a home with alternative financing such as a hard money loan if you have poor credit or a recent bankruptcy as this type of financing has the least regulations yet higher interest rates OR getting a loan through a local credit union which has portfolio type loans with less restrictions than some bank loans OR going to a local in-house lender such as Stearns Lending as they have different options than banks do, can all result in your owning your own home and availing yourself of some of the homeowner benefits given in the below recent article by The KCM Crew.
JUST GET STARTED and stop waiting because you think you aren't qualified. You may just be nicely surprised about the answer you get when you ask.
Best, Ken
Sun Pacific Mortgage & Real Estate
Hard Money Lenders Serving all of CA since 1988!
Attaining the American Dream: The 5 Financial Reasons to Buy
by The KCM Crew on May 11, 2015
We have reported many times that the American Dream of homeownership is alive and well. The personal reasons to own differ for each buyer, with many basic similarities.
Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership in his paper -The Dream Lives On: the Future of Homeownership in America.
Here are the five reasons, each followed by an excerpt from the study:
1.) Housing is typically the one leveraged investment available.
“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”
2.) You're paying for housing whether you own or rent.
“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”
3.) Owning is usually a form of “forced savings”.
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”
4.) There are substantial tax benefits to owning.
“Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”
5.) Owning is a hedge against inflation.
“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”
Bottom Line
We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially. If you are considering a purchase this year, contact a local professional who can help evaluate your ability to do so.
oOo
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