Do you have a big family? Are you considering purchasing a home ?
Here I am sharing 5 Financial reasons to buy a Home
We have reported many times that the American Dream of homeownership is alive and well. The personal reasons to own differ for each buyer, with many basic similarities.
Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership in his paper –The Dream Lives On: the Future of Homeownership in America.
Here are the five reasons, each followed by an excerpt from the study:
1.) Housing is typically the one leveraged investment available.
“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”
2.) You’re paying for housing whether you own or rent.
“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”
3.) Owning is usually a form of “forced savings”.
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”
4.) There are substantial tax benefits to owning.
“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”
5.) Owning is a hedge against inflation.
“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”
Search Results: 22 PropertiesSold Price Last 3 mo.Median$2,010,000Sale Price TodayMedian$4,350,000Price / Sqft TodayMedian$489Days on Market Last 3 mo.Average108
923 E Norwood Street Mesa 85203New Listing$900,000Bedrooms: 8Baths: 5Sqft: 6,922MLS: #6536584Keller Williams Realty East Valley
3265 E Valley Vista Lane Paradise Valley 85253For Sale$8,500,000Bedrooms: 8Baths: 8Sqft: 11,474MLS: #6530823HomeSmart
5531 E Mockingbird Lane Paradise Valley 85253For Sale$27,500,000Bedrooms: 8Baths: 11Sqft: 20,949MLS: #6534041Local Luxury Real Estate
26 Sowles Avenue Bisbee 85603For Sale$849,000Bedrooms: 15Baths: 7.5Sqft: 5,046MLS: #6520042Tierra Antigua Realty, LLC
733 E Campbell Avenue Gilbert 85234For Sale$1,695,000Bedrooms: 8Baths: 7Sqft: 6,000MLS: #6533636Realty ONE Group
41 Biltmore Estate Phoenix 85016For Sale$12,950,000Bedrooms: 9Baths: 13Sqft: 17,819MLS: #6511543Engel & Voelkers Scottsdale
3627 E Bethany Home Road Paradise Valley 85253For Sale$75,000,000Bedrooms: 13Baths: 16Sqft: 12,261MLS: #6525456Realty ONE Group
6710 E Fanfol Drive Paradise Valley 85253For Sale$2,850,000Bedrooms: 8Baths: 8Sqft: 4,251MLS: #6526433HomeSmart
21428 N 55th Avenue Glendale 85308For Sale$1,190,000Bedrooms: 8Baths: 5Sqft: 4,048MLS: #6472303Realty Executives
7702 E Davenport Drive Scottsdale 85260For Sale$2,199,000Bedrooms: 9Baths: 5Sqft: 4,621MLS: #6514289North & Co
5518 N Quail Place Paradise Valley 85253For Sale$4,750,000Bedrooms: 8Baths: 8.5Sqft: 9,442MLS: #6470008North & Co
23036 N Via Ventosa Drive Scottsdale 85255For Sale$16,950,000Bedrooms: 9Baths: 17Sqft: 25,989MLS: #6409935Russ Lyon Sotheby's International Realty
6112 N Paradise View Drive Paradise Valley 85253For Sale$16,000,000Bedrooms: 14Baths: 23Sqft: 52,000MLS: #6447239RETSY
XXXX E Country Meadows Court Queen Creek 85142For Sale$1,995,144Bedrooms: 8Baths: 5Sqft: 5,019MLS: #6410306Network Realty
11408 E Apache Vistas Drive Scottsdale 85262For Sale$10,500,000Bedrooms: 8Baths: 10Sqft: 12,395MLS: #6522361Russ Lyon Sotheby's International Realty
6981 W Villa Hermosa Avenue Glendale 85310For Sale$1,325,000Bedrooms: 10Baths: 7Sqft: 3,007MLS: #6477364Platinum Living Realty
11408 E Apache Vistas Drive Scottsdale 85262For Sale$12,500,000Bedrooms: 8Baths: 10Sqft: 12,395MLS: #6504848Russ Lyon Sotheby's International Realty
36896 W Leonessa Avenue Maricopa 85138For Sale$585,000Bedrooms: 8Baths: 4Sqft: 3,920MLS: #6505544Congress Realty, Inc.
2427 W Yavapai Street Phoenix 85009For Sale$810,000Bedrooms: 8Baths: 4Sqft: 2,575MLS: #6399495Planet Realty
14545 E Rincon Creek Ranch Road Tucson 85747For Sale$5,950,000Bedrooms: 14Baths: 16Sqft: 14,462MLS: #6506692Berkshire Hathaway HomeServices Arizona Properties
17441 W Fair Oaks Road Prescott 86305For Sale$10,000,000Bedrooms: 9Baths: 7Sqft: 10,294MLS: #6525460Russ Lyon Sotheby's International Realty
30609 N 144th Street Scottsdale 85262For Sale$3,950,000Bedrooms: 8Baths: 9.5Sqft: 4,776MLS: #6385187HomeSmart
13166 W McDowell Rd # B
Goodyear , AZ 85395