In today’s economy, it’s a common strategy to try and keep expenses down, reduce costs, and “just hang on” while things rebound. And, with economic pressures, this strategy may seem attractive; to just rent for a while and “save some extra money.”
In most cases, though, this is really a misconception. Money paid out as rent is simply money spent. It’s like burning money – aside from the roof over your head for another month, the only person that benefits from that money is your landlord.
On the other hand, turning your rent payment into a mortgage payment will allow that roof over your head to turn into an investment and allow your money to work for you! There are plenty of Phoenix homes for sale available in the Phoenix MLS, so now may be the time to make a prudent decision.
For starters, every dollar of interest paid on your mortgage is tax deductible. Typically, in the first five years of your new mortgage, most of your payment is interest, and therefore is tax-deductible. For a mortgage payment of $1000/monthly, a homeowner could see $8,000-$10,000 in tax deductions.
Another BIG break available right now is record low interest rates. Current rates are in the range of 3.5%-4.0% and allow for a mortgage amount well over $200,000, if you want to keep your payment under $1000/month. Situations do vary, but most home buyers are surprised at what the kind of home and purchasing power is available to them. We have great mortgage officers available if you have questions!
Another great reason to purchase is that once you own a home, you will have potential for future appreciation. On average, most Phoenix Arizona homes appreciate 3-5% per year, often doubling (or more) the value of your investment over the term of your mortgage. In 2012, Phoenix real estate saw increases from 20-30% in home values. On a $150,000 home, that is an increase in value of $30,000-$45,000.
Finally, aside from the financial advantages, as a homeowner, you have the powerful “Joy of Ownership.” You get to enjoy your home and your home is now YOUR castle – not someone else’s property that you’re living in temporarily. As a home owner, you can paint the walls, pick out your favorite carpet, enjoy your gourmet kitchen, splash around in your pool… You get to decide how you live!
Today is a great time to buy a home. Our Phoenix AZ Realtors would love to help. Contact us at www.ThompsonGroupAZ.com or 480-776-5214.