Great Reasons to Buy a Home
There are still plenty of good reasons to buy a home. In 2015, the average rent for an
apartment in the Washington, D.C. metro area topped $2,000 (2 bedrooms or more are even more expensive). Rents in desirable areas of the Baltimore metro area aren't much less.
With mortgage rates still pretty low, there are plenty of reasons to make the move from renting to buying. Here are just a few:
You will get a better home and it will cost less than renting. There are many areas of the country where there is very little opportunity for renting in desirable neighborhoods. The few rentals in great neighborhoods that do exist can be very expensive and it's likely that rent will go up every time your lease renews. (In fact, the D.C. metro area has the fourth highest rents in the nation, and one of the highest overall costs of living.)
It is all yours. You can paint the walls any color you like, have big or small a dog as you want with no extra "pet rent" fees, and you can renovate the entire house to make it just the way YOU want. Homeownership is a part of the American dream. Plus, an increasing number of neighborhoods are getting apartment-like amenities, like community pools and fitness rooms. Your new home can come with as large or as small a yard as you want -- condos and townhomes can be great options for those who don't want to mow a lawn, but still want to own their home.
Mortgages rates are still low. In 2010 a 30-year loan was around 4.3 percent. Now, mortgage rates are even lower, and you can find deals around 4 percent if you shop around and work with a great mortgage broker.
You will save on taxes. Mortgage interest can be deducted from your income reducing your taxability. Real estate taxes are also deductible. According to current law, gains on the sale of your primary residence are tax-free, up to some pretty good thresholds.
Remember that buying a home has always been a great long-term investment. Real estate prices are on the upswing, and you will benefit from the financial appreciation of your house through next month, next quarter or even next year and five years down the road. If you have questions about the home-buying process, how much home you can afford and more, don't hesitate to contact us!