Buying a home is an important financial decision. In fact, it's likely the most important financial decision you'll ever make, and likely the largest. It's normal to have reservations. But no matter what your reservations might be, 2013 has shaped up to be the year to buy real estate. It's a fantastic time to get into the market. And in case you need to hear more than just that, here are some rock solid reasons why buying a new home in Idaho is a good idea.
There's nothing like the feeling you get after becoming a homeowner for the first time. The pride of owning a home isn't like any other large purchase you can make; this is the big time. It means you've made it. It means you've made a solid investment into your future that's rolled up in stability and security. The sense of stability you get from owning your own home is paramount. You won't just be buying a home for yourself, it's for them too.
Protection Against Inflation
If you've ever rented before, chances are you've had the rent increased on you. Landlords have a tendency to do that. Protection against inflation is one solid benefit to owning your own home, as you can lock yourself into a fixed-rate mortgage that will ensure you make the same familiar payment for the entire life of the loan. If you want to pay more, that's up to you. It's a pretty good feeling having that kind of control over your house payment.
Feeling of Permanence
You'll create a sense of rooted-ness in the community. Owning a home isn't just a financial decision, it's a decision that can shape your well-being. By owning, you're giving yourself the ability to control your living environment, at least to a far greater extent than you ever could by renting. You can do things the way that you see fit, things that need to evolve along with your ever-changing lifestyle. Plus, you'll be living in a community with fellow homeowners who may be a lot like you, and that's a great asset to have.
Prices are on the rise. The latest Home Price Index Report posted by Core-Logic revealed that Idaho has experienced a positive 14.9 percent increase in price gains. These positive numbers aren't only true for Idaho. The entire mountain region as well as the rest of the country have posted rising home values, contributing to levels that are hovering at their highest in more than three years.
The tax benefits are crazy. Home ownership is a supreme tax shelter that favors those who own their own home. Given that your home mortgage balance is less than the price of your home, mortgage interest is fully deductible on your tax return. That's not everything though. Deduct home improvement loan interest, private mortgage insurance, mortgage points/origination, energy efficient upgrades/repairs, property tax, and for 2013 owners can continue to benefit from the loan forgiveness deduction.
One way to think of your mortgage is as a forced savings program. You are giving your lender money each month to pay your mortgage, and except for the interest, that money still belongs to you-in the form of home equity. When you're renting, you're giving that money away. You're building your landlord's wealth, rather than your own.
Advantages of Equity
Taking advantage of an equity loan is one benefit some homeowners choose if they need to pay off other debt, make home improvements, pay for college or medical expenses or to start up a business. Equity loan interest is oftentimes less than that of a credit card, and is deductible-unlike a credit card. Depending on your situation, it can make sense to pay off costly debt this way.
You have so many more options if you own your own home. You have the freedom to do what you want with it, whether that means adding a sun-room or painting the walls whatever crazy color you like. You have no one to answer to but yourself, and that's an awesome feeling. You may have been itching to install a beautiful chandelier or ceiling fan, or to mount shelves for your own mini library. Landlords generally don't let you do that, but if it's your house, you can do what you want whenever you want.
Credit opportunities open up to homeowners. You'll find that it becomes much easier to apply for other loans if you already own a home. Making your mortgage payments on time will help your credit score, which impacts your ability to get car loans, credit cards or any other type of loan that you'll ever need to take out. Having a good credit score is one of the most important things you can have in today's world.
Take a look at Money Magazine's latest issue, and you'll see that the real estate market today has made its comeback. There are several reasons why industry players as well as consumers are finally getting their confidence back. In addition to home price gains, high affordability, low inventory and a continuation of price increases, these all contribute to the healthy and vibrant housing market in Boise, Idaho we're experiencing today.
Corelogic.com: 2013 Home Price Index Report
Realtor.com: Top 10 Real Estate Tax Deductions for Homeowners