BUYING A HOME

SEVEN REASONS TO BUY A HOME




Some people don't need a reason to buy a home, they just want it.  That can be enough justification by itself.  Other people need some solid logic before they're ready to make the commitment.  The following reasons might help you to make a decision.
  1. PRIDE OF OWNERSHIP...among the most popular reasons given by homebuyers is that they want a place they can call their own and decorate and improve it the way they want.  It is a place to feel safe and secure and a place for their family.  They can share it with their friends and enjoy living in it. (https://snip.ly/5ie06d)


  2. GOOD INVESTMENT...Homeowners have a 80 times greater net worth than renters.  By investing in a home that appreciates over time, it contributes to an increasing equity.  The high loan to value mortgages that are available combined with the low mortgage rates also contribute to the investment through leverage which has been described as "using other people's money" to control an investment. (http://snip.ly/cnycfh)


  3. INTEREST & PROPERTY TAX DEDUCTIBILITY...Homeowners can deduct their qualified mortgage interest and up to a maximum of $10,000 of their property taxes as itemized deductions on their federal income tax return.  In some instances, the standard deduction may benefit them more, but they can elect to choose either method each year, whichever helps them the most. (Not applicable in Canada. https://snip.ly/5phzej)


  4. CAPITAL GAINS EXCLUSION...A single homeowner can exclude up to $250,000 of capital gain and if married filing jointly, can exclude up to $500,000 of gain on their principal residence. The need to have owned and occupied it as their home for two of the last five years. (Similar concept in Canadian tax law, but different amounts & rules. https://snip.ly/zmimb6)


  5. CASH OUT REFINANCE...Generally speaking, a lender will allow an owner with good credit and income to borrow the difference in their current unpaid balance and 80% of the fair market value. This money can be used for any purpose and is not a taxable event. (https://snip.ly/xbceco)


  6. EQUITY BUILD-UP...The difference in the value of the home and the unpaid mortgage balance is called equity and it increases with each payment made. It is like automatic savings. (https://snip.ly/t2zsuf)


  7. NO LANDLORDS...Instead of dealing with landlords who may impose restrictions on things like painting, improvements and pets.  Owners are not concerned about rent increases and will have a fixed principal and interest payment for as long as they have a mortgage. (http://bit.ly/2E8t7eY)
A bonus reason to buy a home now are the low mortgage rates available. For more info, checkout https://www.ratespy.com/rate-news.




NOTE: Although many aspects of this article are pertinent to the Canadian marketplace, it is important that you keep in mind that it was originally written for the US marketplace. And, as such, there are enough important distinctions between the two countries approaches to the sale of real estate that it is prudent you discuss any or all of the above with your real estate sales representative and/or with your real estate lawyer before making any decisions -- especially in the case of unconditional Offers. Please be smart and get the facts from a reliable source. This article is therefore intended for "information purposes only"! As such, neither Shawn Venasse - Sales Representative nor Royal LePage Real Estate Services Ltd., Brokerage are responsible for how you use this information. Furthermore, by reading and/or using this "information only" material, you idemnify and hold harmless the aforementioned - i.e. Shawn Venasse - Sales Representative and Royal LePage Real Estate Services Ltd., Brokerage - from any and all damages due to your misuse of this article and information contained therein.