James Cotoia Realtor from EXIT Realty Professional Claims There Are 5 Very Important Reasons to Buy a House Now
James Cotoia has been a full time full service Realtor since 1991. He has helped helped many homebuyers become homeowners. James has an Associates Degree in Real Estate and is a Graduate of the Realtor Institute. James is a member of the Northern RI Chamber of Commerce and part of the Executive of Success Club. James tells us there are important reasons to buy a house now.
Although home prices have come down over the past few years, house prices generally tend to rise over time, so a house is one of the best investments one can make. Home prices have risen three to six percent a year for the last 20 years and the trend is likely to continue. Buying a home now will put capital in a safe investment where it is likely to grow.
People pay less tax. Homeowners can deduct the interest they pay on their mortgage from their total income. The value in this tax break depends on factors like their personal tax bracket, the size of the mortgage, the rate of interest they pay on it and how long the mortgage was held. As a rule, the newer the mortgage, the greater the amount of interest paid each month and the bigger the tax break. Therefore, recent buyers with young mortgages tend to get the greater benefit.
A homeowner will be buying a piece of real property rather then putting money in to a landlord’s pocket every month. The real cost of renting is higher then the monthly payment. There is also an opportunity cost equal to the amount they would gain by using the money to purchase a home instead. Even if the house purchased did not appreciate in price, sell it and recoup some of the money put into it.
Interest rates are still very low historically. This makes it inexpensive to have a mortgage. The lower the interest rate, the lower the payment. Any excess money could be placed on the mortgage to pay the house off faster.
There will be equity in the home for low cost loans for other purposes. A homeowner can access the paid up equity accumulated in the form of a home equity loan home equity line of credit. Because they are secured, home equity loans and lines of credit generally carry a lower interest rate then other types of consumer loans, such as auto loans. The interest on them is generally tax deductible, as well.
With careful planning Real Estate is the best investment one can trust.
James Cotoia also offers homeowners other money saving tips,
"How To Make Your Home More Appealing With Low Cost Tips".
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