10 Reasons Why Renters Should Buy Real Estate Now!

Life is full of milestones.  As a real estate professional, one of my personal favorites is when people make the leap from renting an apartment to owning their own home. Achieving the America Dream marks a significant change in a person’s life. But with daily headlines blasting stories of lower property values, foreclosures and economic downturn, many people are taking a good hard look at their options before signing their name on the bottom line, as well they should.

Despite the headlines purchasing your own home is still a sound economic investment. I have always encouraged potential buyers to carefully consider all of their options before moving forward with purchasing a home. Now more than ever many people can significantly benefit from purchasing a home as compared to remaining in their rental.

Below are 10 reasons why you may want to consider purchasing a new home:

1. Save money: It may be less expensive to own than rent. Your mortgage payment may even be less than your monthly rent.  Even if your mortgage is higher, the tax benefits may outweigh the added expense.

2. Desirably: Trulia.com analyzed the largest 50 cities in America as to which are better to buy in versus rent in. They ranked Mesa #6 and Phoenix #8 as best areas to buy!

3. Affordability: Many buyers who could not afford to buy a home a few years ago can now afford to buy. The Greater Phoenix median purchase price level is close to what it was in the year 2000.

4. Interest rates are very low! Save money! The lower the interest rate the lower the monthly house payment.

5. Save on taxes: If a buyer itemizes on their federal tax return, they can deduct mortgage interest and property taxes. These tax deductions may mean it costs less to own your 1500 square foot house than to rent a 900 square foot apartment.

For example, if someone paid $12,000 in mortgage interest in a year and were at a 20% federal tax rate, they may receive up to a $2,400 annual tax deduction. (The buyer needs to see their accountant as to which is better for them: itemizing deductions versus taking the standard deduction before buying.)

6. Supply: A home buyer has so many choices – one-story or two; patio or backyard; Tuscan or southwestern.  The choices are endless.

7. Negotiating power: Since it is a buyer’s market, the seller often will pay many of the buyer’s closing costs and prepaid expenses.

8. If you previously owned and lost your home to a short sale or foreclosure you may still be able to buy again and don’t know it.

9. Home ownership means a place of your own and place to put your own stuff!  All of it – no more storage units.

10. Someday home prices will go up again!

At the end of the day, purchasing a home is a huge responsibility.  However many people stand to benefit from purchasing a home over renting. Consider the benefits and don’t be paralyzed by fear. See your Real Estate Professional for details and recommendations based on your personal circumstances.