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7 Good Reasons To Consider Buying a Home in Farmington Hills MI – If you are like most first-time home buyers, you may have mixed feelings about purchasing a house. Having reservations is normal. You may be worrying about getting tied down and taking on a lot of debt. However, the more you know about the benefits of buying a home, the less intimidating the entire process will seem.
Here are 7 good reasons why you should consider buying a home in Farmington Hills MI if you can afford it:
1). Pride of Ownership
The number one reason why most people want to own their own home is the pride of ownership. Buying your first house is a major accomplishment and an important life milestone. In a recent survey conducted by the National Association of Realtors, buyers ranked “desire to own my own home” as their primary reason for buying a house.
You’ll have the stability and emotional security of owning your own home. No more worrying about rent increases, negligent or bossy landlords, or the possibility your building will be sold and turned into a condo.
You’ll be able to live in your house as long as you like, fix your monthly payments for as long as 30 years and you’ll be in charge.
Homeownership also gives you the freedom to paint the walls any color that tickles your fancy, decorate any way you desire, and choose the types of upgrades and new amenities that appeal to your individual lifestyle.
2). Roots Within A Community
When you buy a house, you’re not just another tenant swinging through a rental property’s revolving door. Buying a home gives you roots. Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community.
It also offers children the benefit of educational and social continuity. An ongoing 80-year study by Harvard proves a sense of community is essential to living a long and healthy life, all the more reason to stay awhile.
3). Appreciation
Historically, real estate has had a long-term, stable growth in value. Real estate moves in cycles – sometimes up, sometimes down. Yet over the years, real estate has consistently appreciated.
In fact, median single-family existing-home sale prices have increased on average 5.2 % annually from 1972 through 2014, according to the National Association of REALTORS®. Even in the most recent 10 years, which included a few very bad years for housing, values are still up 7.0% on a cumulative basis.
4). Property Tax Deductions
You can deduct the interest you pay on your mortgage from your taxable income. The value of this tax break depends on factors like your personal tax bracket, the size of your mortgage, the rate of interest you pay on it, and how long you’ve held the mortgage.
As a rule, the newer the mortgage, the greater the amount of interest you pay each month, and the bigger the tax break. Recent buyers with young mortgages tend to get the greatest benefit. IRS Publication 530 contains tax information for first-time homebuyers.
5). Capital Gain Exclusion
Building equity in your home is a ready-made savings plan. When you sell your home, the capital gains on the sale are exempt from capital gains tax.
Based on the Taxpayer Relief Act of 1997, if you are single, you will pay no capital gains tax on the first $250,000 you make when you sell your home. Married couples enjoy a $500,000 exemption as long as you have lived in your home for two of the past five years.
You don’t have to buy a replacement home or move up.
6). Mortgage Reduction Builds Equity
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home. With each mortgage payment, you pay down your debt and accumulate equity in your house.
Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The principal portion of your principal and interest payment increases slightly every month. It is the lowest on your first payment and highest on your last payment.
7). Home Equity Loans
You’ll be able to use the equity in your home for low-cost loans for other purposes. You can access the paid-up equity you accumulate in your home in the form of a home equity loan or a home equity line of credit.
Because they are secured, home equity loans and lines of credit generally carry a lower interest rate than other types of consumer loans, such as auto loans. Consumers can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical, or starting a new business. Some state laws, however, restrict home equity loans.
The Takeaway
Yes, buying a home in Farmington Hills MI is a major commitment, but the financial and lifestyle benefits are well worth the cost. If you can afford to buy now, you’ll thank yourself in the long run, and whenever your friends get their annual rent increases.
Partner with Top-rated Farmington Hills MI REALTOR® -Tom Gilliam
A top-rated Farmington Hills and Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands of dollars when buying a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro.
From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Oakland county MI properties, Tom is able to match your lifestyle needs with the perfect home.
If you are ready to list your current property, Tom has the experience and skills necessary to handle the sale and marketing of your home for the optimum results. Tom employs the latest technology to deliver massive exposure that will drive mega-response from qualified buyers.
Tom also partners with the most talented home stagers to ensure that your home is thoughtfully staged to best showcase its features and amenities. With over 25 years of local real estate experience, Tom will protect your interests, advocate for you, and go above and beyond your expectations to ensure a smooth and successful transaction.
If you or someone you know is interested in buying or selling Farmington Hills MI real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.
Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578
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