Why Buy in 2014

Posted by Katie Netherton on Friday, October 10th, 2014 at 4:05pm.    1300 Views

Why buying a home in 2014 is a good idea

With tax incentives and property values increasing, buying a home is often considered a sound investment. Outside of the financial benefits, mortgage trends are now pointing to an upswing in real estate values for 2015. This means that those who didn’t buy a home in 2013 are already feeling the remorse of their inaction and those who miss the boat in 2014 could be even sorrier.

 While finances and credit history have major effects in the home buying process, those who can buy may want to take this option into serious consideration before prices continue to increase.

 Real Estate Value Trends

Economists and those in the mortgage industry are predicting an increase in home prices for 2015. While 2014 reflected an increase of 13.6 percent in real estate values, this number is predicted to rise another 5 percent in 2015. While the crash in 2008 has many people tightening their belts and staying put, these trends and expectations show that home values are starting to level out. This means that we seem to be slowly moving away from a “buyers’ market” in terms of real estate. Since prices are expected to continue to rise, those who are on the fence may want to consider action sooner rather than later.

 Incentives, Costs, and Taxes

For those who are still feeling reluctant about owning a home, homeownership has some excellent benefits:

  • One major incentive for those who choose to buy a home comes from a basic need: Possession. Once you sign a home loan and get your keys, that property is yours (provided you pay your mortgage and other bills on time). You can paint the walls whatever color you like, you can get a dog without having to sign a contract, you can tear down walls for expansion, and the list goes on. Homeowners experience a freedom many renters have never known: Ownership. While this freedom comes with additional responsibility, any homeowner will tell you they wouldn’t change a thing (other than maybe the size of their bathroom, with the best part being – they have that option).
  • Along with the freedom homeownership offers, tax incentives add to the financial benefits. When you take out a home loan, you pay that back with interest. While this added interest cost sounds like a raw deal, it can actually be added to your taxes. The mortgage interest you pay every year is tax-deductible. Certain fees that are paid at the time of closing can also be deducted from your taxes, along with the possibility to deduct property taxes, renovations, and a home office. When shopping for a house, it’s important to consider these deductions as part of the cost. Once deductions are factored in, this may show that being a homeowner is less expensive than you imagined.
  • While 2008 challenged the old adage that buying a home is a sound investment, as real estate prices increase and people are getting smarter with their spending habits, we’re learning that this is still a solid bridge to cross. One thing to keep in mind is that if you’re thinking of buying a home, it’s best to stay within or under budget. When explained simply: If you are smart in the homebuying process – when the time comes to sell, the financial payoff could be a.) that you lived for free over the period of time you owned that property or b.) if you get really lucky, you paid yourself to live in that home over the duration your residence. And, the short answer is: Yes, buying a home is a great financial investment, but only if choose wisely and you stay within budget. 

At Union Home Mortgage (UHM), we understand that deciding to be a homeowner is a big, personal decision. For those who are content with renting, we often ask them to think about this: When you pay your monthly rent, that money goes to a landlord. When you buy a home, your monthly mortgage payment goes into an investment. And, when you break things down to basic needs, you have to live somewhere. Why not pay yourself rather than your landlord? For more information on buying a home or to find out more about real estate trends, feel free to visit UnionHomeMortgage.com.

Katie Netherton
Digital Marketing & Content Specialist



t:  440.973.8403
e:  knetherton@unionhomemortgage.com
w:  UnionHomeMortgage.com

    
8241 Dow Circle West
Strongsville, OH  44136

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1 Response to "Why Buy in 2014"

Jordan Whitacre wrote: Great article for anyone thinking about buying a home in the foreseeable future......it is definitely time to make your move.

Posted on Saturday, October 11th, 2014 at 7:28pm.

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