Why People Buy Homes

Why are you buying?

This should be the first question you ask yourself before getting pre-qualified or doing any research.  What are the reasons you want a home?  There is no right answer to this question, everyone has their own reasons for wanting to get their “piece of the pie”.  In the end it’s important to understand the motivation behind this, so you know you’re buying for the right reasons.

Common reasons people buy homes

 Equity

I see the majority of my clients buying because they understand the value of equity.  They understand this is something you can only build by owning a home,  here is a good article about the future of renting; it explains that rents will continue to increase along with the value of homes; where as a fixed rate mortgage will not.  It also explains that a mortgage will eventually be paid in full, something rent never can do.  At some point in your life your income will decrease, this happens around retirement age.  It would be ideal that your living expenses decrease along with it (I.E something rent will not do)

Pride of ownership

The pride someone feels in owning their own home is immense, and when they close on their home and hold the keys in their hand they realize this.  They have the chance to make the house a home, new paint, new windows, a garden.  They can host parties and have people over without the concern of their neighbors on the other side of the wall.  It provides a lot of freedom they didn’t have previously while renting.

Tax benefits

Now that you are a homeowner you have certain tax benefits you didn’t have before.  Mortgage interest, real estate taxes, closing costs are all deductible and allow you to keep more of your hard earned money.

Future capital

At some point people decide they want to move.  The reasons can be an increasing family, job transfer or just a change of scenery.  A house provides you with equity you can use for future purchases.   When you sell your home you will receive a profit.  This is the equity you’ve built up on your home from just paying every month.  You have choices with the money, it can be used as a large down payment on a new home, you can pay off existing debt with it or you can allocate it to investments.

 What you get

When you pay $1,000 in rent versus $1,000 in a mortgage payment, the value you get is immensely different.  You will find the $1,000 mortgage payment will get you significantly more in square footage, acreage and peace of mind.

 

The take away

The reasons people buy homes will vary, it’s important to understand why you want to own a home; whether it be for financial benefit , pride or both.  You can contact me directly to get started, or visit my website here.  Either way I would love to sit down and consult you on options.

What Can I Do Now?

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Justin Scott

Loan Officer

NMLS 878581

  1. C) 920-530-4484
  2. O) 920-490-8823
  3. F) 920-490-8967

       Executive Mortgage

      NMLS 271650

 909 . E Walnut Street

Green Bay WI 54301