The summer of 2022 is turning out to be a great time to purchase a new home! Lots of new inventory, less bidding wars, and attractive mortgage programs are allowing buyers to lock in good long-term investments instead of renting!
Benefits of Owning a Home
- Homeowners can write off interest expense of the mortgage on their taxes.
- Potential appreciation of a tangible asset. Average appreciation in Phoenix is generally 3-5% per year. That could be $9000-$15,000 in appreciation on a $300,000 home!
- Homeowners enjoy the pride of ownership. What color do I paint the walls, what kind of floors do I want, I love cooking in my gourmet kitchen, or working on cars in my 3-stall garage/Man Cave. The point being is that many decisions a homeowner might want to make may not be approved by the landlord.
- Purchasing is better than renting (renting is throwing your $$$ away). At $2000/month RENT, you are burning about $24,000/year, $120,000 every 5 years, $240,000 every 10 years or $480,000 over 20 years. For the same payment, you could own a $400,000 home.
- A mortgage payment pays down the principal amount through the life of the loan. At the end of the first 5 years, a homeowner will have paid $14,593 of principal on a $150,000 loan at 4%. At 10 years, the amount paid is $32,147. At the end of 20 years, the amount paid is $79,749.
- Once the loan is paid, you don’t pay rent or a mortgage.
- Tax deductions when you own a home includes being able to deduct the annual interest paid on your mortgage loan and property taxes for the home. Rarely thought about when you rent, but it can be a huge savings when you go to pay the IRS in April!
Want to get started?? Contact us at 602-753-0177 or MyAZHouse.com
