Buying a new home from the available Paradise Valley homes for sale is a huge step for most people, so it's crucial to carefully consider all the decisions you have to make about this thing. Knowing the advantages of having your own home may help you in deciding. It might also encourage you to do it, as you are likely to get nervous especially if you're a first-time home buyer.
The advantages of buying a new home include, but are not limited to, the following:
- when you have your own home, it kind of gives you a sense of pride, security, as well as stability. This is possibly the main reason why many people dream of having their own someday, meaning you can do whatever you please: If you don't like the color of the house, you can change it whatever color you like; When you want to turn the volume up when watching movies or just listening to music, you can because you own it; You can decorate it and change it however you want it, whenever you want it. Moreover, having your own home is like investing to secure your future.
- Buying a home can be considered as an investment and a lot of people regard it as a protection against inflation. This may be because of the continuous appreciation of real estate over the years, even though it moves in various cycles. The Office of Federal Housing Enterprise Oversight (OFHEO) tracks the changes of the value of single family homes in the U.S.
- Homeowners are normally given preferentiality when it comes to tax rates, so this is another advantage if you have your own home. Provided that your mortgage balance is less than the price of your property, the interest, which is the biggest part of the mortgage payment, can be completely deducted on your income tax return.
- Another advantage of having your own home is the deduction of property tax. The real estate property taxes that you will be paying for your first home can be deducted in full.
- If you are a single homeowner and you have resided in your house for two out of the five years that have gone by, you can exclude a maximum of $250,000 of profit from capital gains; for married couples, the capital gain exclusion can reach up to $500,000. This is a great advantage considering that there aren't any age restrictions and you're not required to move up or buy a replacement home. You can exclude from taxes every two years meaning, you could put your home up for sale every 24 months and keep your profit, which is subject to limitation, free from taxes.
- Those who have balances on their credit cards will not be able to deduct the interest, which may cost about 18% to 22%. For homeowners, it's just sensible to pay such type of debt with a home equity loan, as its interest is usually smaller and it can be deducted.
These advantages can also be an additional reason why you should buy a Paradise Valley real estate. Being aware with such benefits can help you get ready when you're just starting with the home buying process.