Financials experts offer a variety of reasons why purchasing a home and starting ownership when you are young is a great decision and real estate investment.
Smarter spending. When you purchase a home you’re investing in your future. As you reduce the mortgage balance, home equity will increase; helping you to build a nest egg for retirement.
Potential tax breaks. The mortgage interest that you pay may be tax deductible. Additionally, if your property value increases by less than $250,000 and you have occupied the primary residence for more than two years, you can avoid capital gains tax when selling the house.
Positive credit score benefits. If you always make your payments on time, a home mortgage can help you improve your credit score. As a result, getting new loans and the lowest available interest rates will save you money.
Locked in monthly payment. A mortgage allows you the freedom of knowing exactly what you’ll pay for housing each month. You are protected from the rent increases that non-homeowners face when budgeting monthly expenses
Before you purchase your first home, it’s important to understand what to expect during the process and what types of costs are involved. For new home-buyers or those looking to buy a home in Solano County, contact me for more information.
