5 Substantial Benefits of Owning a Home in 2019

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Are you frustrated with renting or simply ready to own? While the process of buying a home can be challenging, there are many advantages to owning a home in 2019. If you are undecided on your next move for your living situation, read to discover the many benefits of owning a home that you love.

Appreciation will provide you with financial benefits

Over time, the value of your home is likely to appreciate. Generally speaking, real estate is an ideal investment in which your purchase will appreciate as you pay it off over the years. Think of homeownership as an investment that will provide you with many financial benefits in the long run.

Ownership can boost your capital

A mortgage requires a homeowner to make recurring payments each month. Over time, making payments on time will help you to reduce the principal balance of your loan. In a way, you are paying towards something that will increase your net worth each time that you make a payment. As a result, you will have more capital to put towards other investments.

Payments allow you to build equity

Equity is an excellent benefit of mortgage payments. Every month, a homeowner builds equity in their home by paying their mortgage. A homeowner can use equity for other uses, such as paying off personal debts or starting a business.

Owning a home can protect you from inflation

Rent prices continue to increase each year. To protect yourself from the negative effects of inflation, homeownership is a sustainable answer. By ensuring that you have a fixed mortgage, you can anticipate what your mortgage payment will be each month. As a result, you can also put money towards other expenses without worrying about inflation.

Purchasing a home provides you with tax advantages

Many people do not realize that there are many tax advantages to purchasing a home. Be sure to work with a licensed professional to see which tax benefits are available to you as you are purchasing your home.

HUD Foreclosures

HUD foreclosures and VA Foreclosures are some of the best homes to buy when price is part of the equation. As with most Americans, price is always a concern. If not buying the same house for less, why not buy more house for the same dollar invested? When looking for a good deal it is hard to do better than the VA or HUD foreclosures market. The simple truth is that there are just more VA and HUD homes on the market, as they represent such a large number of mortgages that are generated each year. This translates into more foreclosures just by the magnitude of difference between all others comparing to the two largest.

The two largest also being government owned and operated means that they have less time to wait to make money back on the home. The FHA is especially known for selling HUD homes for less than the average sales price in a given area. FHA foreclosures represent a fraction of HUD but they are still a significant number of homes and both should be considered.

VA (Veterans Administration) and HUD (Housing and Urban Development) have different and unique opportunities for the buyer. Both are often forgiven for the local taxes normally associated with the purchase of a home (this is on a county by county basis). Be sure to ask the local title company or escrow company to look into it for you before closing as this is often missed due to their are not used to dealing with the 2 to 3 percent of the market that VA and HUD foreclosures represent.

Foreclosure Listings Increasing

As the market settled after the mortgage meltdown foreclosure listings also settled and fewer homes were on the market with a placard reading “Bank Foreclosure” in big red lettering. This was a good thing for the entire real estate market. Having an abundance of foreclosures brings the entire market down and it makes it harder for home owners, who would like to move, to get the appropriate price for their home as a similar home down the same street was sold for substantially less and the appraiser is using the foreclosure as a comparable sale.

This is just one of the problems when there are too many foreclosure listings in any area. Another issue is the television set that sits in everyone’s living room harping about the price of homes based on the number of foreclosures and this constant barrage of negative information makes most people sit on the sidelines waiting for the market to either implode completely or to correct itself. Meanwhile while they wait, others are buying foreclosure listings and making great investments.

Whatever the reason, a market can only handle so many foreclosure listings at any given time. The more foreclosures, the lower the market gets and this is a lesson the banks that were foreclosing and selling off realized too late. The market and their investments would have been better off if there had not been a rush to divest themselves of the toxic assets made more toxic by their own actions.