7
Reasons Why You Should
Buy Your First Home
If you don’t own your
own house and are currently renting, here are 6 very,
very compelling reasons why you should buy your first
home.
1.
Enjoyment. The primary reason
you should purchase a home is for the enjoyment it will
bring you and your family. Look at it as the difference
between being a place to live and having a home. You
should buy a home that you will love living in! Now, you
probably won’t live in the first house you buy for the
rest of your life. The typical person in this country
moves every 7 years. As you get older, you’ll probably
have a higher income and your housing needs and desires
will expand. You will likely sell your first home and
trade up to a larger, nicer one. However, your primary
focus when choosing your first home is to buy a house
that will bring you enjoyment each and every day that
you live there. If you do that, the improvements in your
quality of life will be literally priceless.
2. Peace of Mind.
There is nothing like coming home at the end
of a hard day knowing that this is your home. The
fact that you and your family are safe and secure is
priceless.
3. It’s a
great investment. Bunny’s
parents bought their first home in 1957 for $12,900. It
was a modest home, just under 1,000 square feet, in a
relatively nice neighborhood. Over the years they added
2 additions as the family grew, for a total of over
1,800 square feet. We recently sold their home for them
for $385,000! Art’s parent’s bought their home in 1959
for $31,000. They sold it in 1999 for over $600,000.
Granted, much of that increase in value is due to
inflation, but with government spending and deficits at
record levels, inflation will continue and likely
accelerate in coming years. By buying a home now, you
will own an appreciating asset, purchased using mostly
Other People’s Money, that will go up in value as
inflation causes the general price level of everything
to rise. It’s estimated that over 60% of people’s entire
wealth is the equity in their home.
4. Tax
Savings. The tax savings from
mortgage interest can be huge. If you are currently
paying $1,200 per month to rent your apartment, that
same amount applied to a mortgage loan payment would
result in a nearly $14,000 tax deduction (in the first
few years of a conventional mortgage, nearly all of the
payment goes towards interest, and very, very little
goes toward paying off the loan. The interest is tax
deductible). If you are in the 28% tax bracket, this one
deduction would be an annual savings of over $3,900 on
your income taxes. Your property taxes are also
deductible.
5. Financial
Benefits. However much you are
currently paying for rent, it is money that goes into
someone else’s pocket, never to be seen again. Contrast
that to buying a home using a mortgage loan; instead of
spending money on monthly rent, you are paying off a
loan used to purchase the property. With each monthly
payment, the loan balance goes down, and the equity in
your property goes up. The monthly payment goes toward
buying that appreciable asset. Plus, you get to live in
it.
6. Privacy.
As a renter, you are not entitled to the same level of
privacy that a home owner is entitled to. It is common
for landlords to retain the right to inspect the
interior of their property upon giving the tenant proper
notice 24 hours prior to the inspection. When you own
your home, nobody can enter your home without your
permission. It’s your personal space and you can do what
you want. Your home is your private sanctuary for you
and your family.
7. Freedom.
Do you want to build a tree house in the backyard for
your children? Would you like a basketball court on your
driveway to use for weekend games with friends? Want to
have a large 4th of July barbeque for 100 of
your closest friends? Do you want to paint your rooms a
color other than white? You don’t need a landlord’s
permission. Being a homeowner provides the freedom to do
these things and virtually anything else that is legal
to do. You do not have a landlord telling you what you
cannot do. The freedom is priceless. |
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