Buying a home for the first time is a major investment that will likely affect your future financial decisions. But it’s not something to fear. Real estate may be complex, but we’re here to help you with everything. You’ll be taken care of.
But why buy a home at all? There are several reasons:
Valuable and Profitable Investment
Buying a home enables you to put your savings into an asset whose value will grow over time. Investing in a home offers a safer alternative to other forms of growing your capital. Real estate, for all its ups and downs, is always one of the lowest-risk investments you can make.
Opens Up New Opportunities For The Family
Being able to pick the right amount of space and what amenities should be included gives you and your family space to explore new hobbies, activities, and areas of interests. You can plant a garden in a yard, you can paint and decorate however you like, you can have any pets you like – any restrictions management companies typically place on apartment rentals are no longer in your way.
Freedom From Landlords
A home of your own gives you stability and independence. Complete control remains with the homeowner. If you are tired of having to deal with abusive or negligent landlords, or living with inconsiderate roommates, then buying your own home is the best way to get that freedom back.
Here in Southern California, especially, rent can sometimes cost more than a mortgage would – wouldn’t you rather determine your own destiny?
Homeowners are given deductibles on their interest payments and property taxes. Every state offers tax advantages that come with home ownership, and California is no different. This will give 1st time home buyers a cushion against the financial burden of down payment and the next monthly payments to come.
These days, too, updating energy systems (to things like solar power for electricity and smart plumbing for water conservation) can also yield tax benefits which you wouldn’t get if you only rented.
Is buying a home simple?
No, of course not. Real estate is a tricky industry, and navigating the ever-expanding legal system is not to be taken lightly.
That said: when it’s all said and done and the keys to your new home are in your hand, you’ll have come a long way from the timid renter you were before. You’ll have a mortgage you can afford, and you’ll sleep easy knowing you’ve made a smart investment with your money.
Things to Avoid
Never buy a house you can’t pay for. Use mortgages only when you’re comfortable that you can pay for it over time.
If you have bad credit, be sure to fix it first to avoid getting disqualified from your mortgage applications. And even if you are able to secure a mortgage with low credit scores, usually below 620, the interest rates and fees can skyrocket, which will make it even harder to keep up with your financial commitments. It’s worth the time and effort to fix bad credit.
Planning is key to buying a home. It can take years to plan, and to be financially capable of buying a property, but it pays out in huge dividends over the long run.
If you’re interested in talking more with someone about first time mortgages, contact Mike Wise at Capstone Direct today!