South Atlanta Househounds

Everyone knows that the historically interest rates we’re enjoying now is the top reason to buy now. The lower the interest rate, the less you actually pay for your house and the sooner you can pay the mortgage off. If that’s not enough, here are four more reasons.

1. Property is a very good long term investment. House prices tend to rise over time, so a house is one of the best investments you can make. Home prices in the U.S. have risen three percent to six percent a year for the past 20 years. That trend is likely to continue. So if you buy a home now, you’ve put your capital in a safe investment where it is likely to grow.
2. Avocado bathrooms, lime green walls, shag carpeting – that’s what you get when you rent. You’ll be able to redecorate and renovate any way you like, any time you like. Rules about the paint colors you can use will be a thing of the past. And you’ll be able to tear out walls, install a powder room and make any other improvements you want. Best of all, if you decide to sell, you’ll recoup at least part of the cost of the improvements.
3. Mortgage reduction builds equity and paying rent builds nothing at all. You’ll be buying a piece of real property rather than putting your money into a landlord’s pocket every month. The real cost of renting is higher than the monthly payment. There is also an opportunity cost equal to the amount you would gain by using the money to purchase a home instead. Even if the house you purchased did not appreciate in price, you would be able to sell it and recoup some of the money you put into it.
4. You’ll pay less tax. You can deduct the interest you pay on your mortgage from your taxable income. The value of this tax break depends on factors like your personal tax bracket, the size of your mortgage, the rate of interest you pay on it and how long you’ve held the mortgage. As a rule, the newer the mortgage, the greater the amount of interest you pay each month and the bigger the tax break. Therefore, recent buyers with young mortgages tend to get the greatest benefit.