Are you considering buying a home in San Antonio now or in the future? If you're currently renting there are some major benefits that owning a home would provide. Here are the top 6 reasons to buy a home.
If you are like most homeowners and have a loan out on the property, all the interest that you pay is tax deductible.
Let's take this example... Say you have a mortgage of $1100/month and say $250 of that goes to principle and the other $850 goes towards interest. That year you'd pay approximately $10,200 in interest.
Additionally, if you itemize your tax deductions rather than taking the standard deduction, you can also deduct the property taxes you pay for your primary residence. Let's assume your property taxes for the property are $4,000. This leaves
a total of $14,200 worth of deductions for owning the property rather than renting it.
If you are in the 25% tax bracket, that is over $3,500 more in your pocket come tax time...
In San Antonio, home values increase around 2.5% per year on average. Let's see another example. Say you purchase a home for $200,000. After 7 years, that home would be worth, through an average market, over $237,000. That's an
average increase of over $5,000 per year.
As mentioned earlier in the tax savings section, a portion of your mortgage payment each month goes towards paying down the principle payment. This means if your original mortgage balance was $200,000 and payment was say $1100 per month, $250 of
which was going towards principle.
Over the course of 7 years, or 84 months, you will have paid over $21,000 towards the principle balance. This means that whenever you sell you'll know earn this much plus whatever appreciation you've accumulated over that time. That is another
$3,000 per year more that you put in your pocket...
Now for the non-financial reasons to owning a home. When you own a home, you typically stay 4 times longer than if you rent. This allows for you to get to know your neighbors and connect with your local community. If raising a family,
this is a great opportunity for your children to establish longer relationships with other kids in the neighborhood.
Research shows that children of homeowners earn higher test scores and graduate at a higher percentage than those of renters. Change is hard... Especially on children. When kids can focus on their school work and don't have their environment
changed as often, they can excel easier than moving around every couple of years.
And finally, there is a joy that comes only with owning your own home. Knowing that you can do just about whatever you want with the home, the decor, the landscaping. Not worrying about if the seller wants to sell and potentially force you
to move... These are all things that make a person feel comfortable and happy.
If you have never owned a home and would like to know more about the process, setup a free 30 minute buyer consultation with me here
The consultation takes place over the computer or your phone via a zoom meeting. I will explain how the process works and give you an idea what it would take to purchase a home in your scenario. I work with clients that purchase many years
later, so it's never too early to get started with the process... I look forward to connecting with you soon!