You may have been a renter for a while and now want to get into the housing market and own your own home. It's also possible that you own a condo or a townhouse and now might, but want to buy a bigger and perhaps detached single-family home. This can be a great idea as long as your finances are in order and you are ready for the purchase.
Here are some great reasons why you should buy a single-family home.
The Home Will Appreciate Over Time
While you may have enjoyed living in your condo or townhouse, and while they do appreciate in value over time, they won't increase their value at the same rate as a single-family house will. The real estate market can fluctuate in value with its ups and downs, but for the most part, single-family homes hold their value better than most other real estate does, and it tends to increase in value faster and at better rates than condos or townhouses.
This is mostly due to the fact that they are more sought after and popular, and also because they will have more land attached to the property than either of the other two options. When you have a home that increases its value more quickly over time, you also have a great investment that can help your finances in the long run, should you ever sell it.
Property Taxes Are Deductible
When you buy a single-family home, you are going to find that any property taxes you pay are deductible when you file your income tax return. First-time homebuyers are at an advantage here, as many states offer first-time homebuyers an incentive for their property taxes to be fully deductible on their income tax return. This also includes vacation homes.
It's also possible to receive mortgage interest rate deductions too. When you buy a single-family home and your mortgage balance is smaller than what your home has been valued at, the interest you are paying on that mortgage will be deductible on your taxes. This comes into effect once you have paid down your mortgage, but it may not take as long as you might think to get there.
You Can Get Equity Loans
When you buy a single-family home and have paid off at least some of the mortgage on it, it's possible to use that home as collateral if you need a loan to pay off other debts. This is known as a home equity loan. You can get a home equity loan to help you pay off debts like credit cards or car payments, and you will pay less interest on that loan than if you went to a lender or bank.
You can also use a home equity loan to pay for college, home renovations, medical expenses, or even if you start a new business. Check with your state to see what your state allows equity loans to be used for and what restrictions there could be.
For more information about single-family homes for sale, contact a local real estate office.Share