Angela von Detten
If you’re thinking about buying a new home but have reservations in the current market, don’t be deterred—there’s still good reason to start building home equity. From a hedge against inflation to tax benefits, check out all the advantages of buying today.
You should still make it a priority to purchase a home and here is why:
1. Hedge Against Inflation
Historically, appreciation in real estate has outpaced the rate of inflation. With interest rates expected to stay high for the short term, you will end up coming out ahead since the interest you are paying is less than the inflation rate. Once the inflation rate falls, interest rates will fall along with it - you can choose to refinance at a lower rate while still saving money.
When making your monthly mortgage payment, it's important to note that a portion of your bill pays down the loan's principal. Meaning- you are building equity! Down the line when you sell this home, you will get the money back.
3. Tax Benefits
A huge perk of owing a home are the tax breaks! If you were to rent, there would be no tax deduction for you to claim.
4. Long-Term Appreciation
Just as you'll build equity for your home, you will also obtain price appreciation! Based on historic data, chances are high that you will realize an increased value in your home.
Read on for all the details from Forbes here.
Angela von Detten is as passionate about Los Angeles living as she is about finding your unique dream home. Contact Angela today to get started on your journey.Contact