Vegas Real Estate
Las Vegas Homes •
Las Vegas Condos
Americana Group, REALTORS® Nevada's Leading Full Service
Real Estate Company Since 1979
"No Fancy Slogans, Just Great
Service" by Bill Smith
CONTACT USSITE MAP
TRANSLATE THIS SITE
#271 - Six Top
Benefits of Owning A Home By Melissa M.
Ezarik • Bankrate.com
Sure, buying and owning a home
has its share of problems.
First there's the down payment and closing costs to muster. Then there's the
property tax hit. And maintaining a residence isn't cheap. When it's time to
move, "pick up and go" is hardly a feasible option.
rewards, in most cases, make those drawbacks seem like minor inconveniences.
"The large numbers attached to a
real estate purchase can often overwhelm first-time home buyers, so they
continue to rent as a result," says Dan Auito, a Kodiak, Alaska-based real
estate consultant and the author of "Magic Bullets in Real Estate." But, he
adds, "The advantages far outweigh the risk or effort required in obtaining and
maintaining one's own personal residence."
Those perks are both financial and
According to the National
Association of Realtors, record numbers of Americans have purchased a home in
recent years. U.S. Census data for 2003 show a total of 68.3 percent of
Americans are homeowners.
Here are six significant reasons
to grab that hefty piece of the ownership data pie:
Although they're the stuff that bill-paying grumbles are made of, mortgage
interest and property tax obligations are a homeowner's best friend come
April 15. For both federal and state income taxes, these payments are
usually fully deductible. And in the first years after a home purchase, most
of the money paid toward those mortgage payments represents interest. Think
of it as a government subsidy on the purchase. In addition, many closing
costs, such as points paid and fees for your loan application and appraisal
may be deductible, either immediately or down the line when you plant that
"For Sale" sign in your lawn.
talking about the financial kind. Homes are considered a safe, steady
investment, with values that rise while debt amount drops. The national
median home price has risen every year --even during recessions and periods
of sales declines -- since 1968, when the NAR began tracking it. Typically,
the values appreciate at the rate of inflation, plus 1 or 2 percentage
points. Sometimes it's a greater increase. In 2004, for instance, the median
price went up by 9.4 percent. A long-term investment? Yes. Harvard
University's Joint Center for Housing Studies found a dramatic increase in
the rate of return on housing the longer it's held. For example, a buyer who
makes a 10 percent cash down payment with an annual home appreciation rate
of 5 percent could expect a 94 percent return on the cash after three years
of homeownership. After five years, the return increases to 225 percent, and
after 10 years, a whopping 623 percent.
Equity:The portion of property that's actually
owned, or equity, also rises over time. "Owning a home allows you to build
the equity that accompanies appreciation," explains Timothy Spangler, CEO of
a real estate investment company and author of "From the Rat Race to Real
Estate." He adds, "You can't build equity if you are a renter." Moira
Cotlier of New Haven, Conn., is a good example. "We paid rent to landlords
for nine years before buying our house. Nine years," she says. "Do you know
how many tens of thousands of dollars that was for places we had no stake
in? What a waste!" Since 2001, she and her husband, Keith, have been paying
themselves instead. Mary and Rich Hallahan, who own a Madison, N.J., home,
think of the investment this way: "You are forcing yourself to save by
investing in an asset over time," she says. Their home, purchased in 2002,
has appreciated by about 10 percent since then. What's more, a first home
often leads to a better second home. Equity buildup and appreciation in a
first home help in the transition to a second. According to the NAR,
first-time homebuyers' median down payment is 3 percent; repeat buyers,
meanwhile, put down 22 percent.
Borrowing power:For owners who opt to stay put, equity still comes in
handy. It can be used to secure a loan or obtain a line of credit, meaning
"more buying power to fund home improvements or to assist with the
purchasing of investment property," Spangler says. Cash for emergencies or
big-ticket items is also an option.
Stability: Renters generally have no idea what
they'll be paying a few years down the line. Homeowners with fixed-rate
mortgages, however, essentially have the same payment for up to 30 years.
Even those with adjustable rates have a cap and can figure out their maximum
potential mortgage payment. The stability also comes from the sense
homeowners get of being anchored to their community. "It gives you a little
more leverage when it comes to community issues and activism," Cotlier says.
"When you own your home, and you're paying taxes on it, you might have your
voice a little better heard when it comes time to speak up about
neighborhood or community issues."
Freedom:Speaking up within your home is also much easier when
you own it. No need to worry about "the downstairs neighbors complaining
you're too loud, or the upstairs neighbor stomping around at 1 a.m.," says
Sandy O'Keefe, who rented for about eight years before purchasing a
Mansfield, Mass., home with her husband, Rob, in 2004. O'Keefe also
appreciates the decision-making autonomy. "You … pick every paint color
[and] won't get fined for scratches on the wall," she says. The
decision-making extends to the yard as well. Cotlier sums up the
homeownership benefits in one word: roots. "You can plant perennials and
enjoy them forever. You can plant a tree and watch it grow and grow. You can
plant a family and watch it blossom." (Author: Melissa Ezarik is a
Connecticut-based freelance writer)
hope this report is of value to you. If there is any way we can be of service,
please contact our office.
consider it a privilege to be of service to you! If you would like a FREE,
non-committal consultation, please call me at 702-273-8705.
Accredited Buyer's Agent (ABR) Century 21
For more information about selling your
home, please do not hesitate to contact me
Note: This is a reprint furnished to you by Bill Smith and
Liberty Realty. Neither Bill Smith nor Liberty Realty are liable for it’s
contents and make no guarantees as to the accuracy of this report, either
expressed or implied.
HOME CONTACT US
SITE MAP Las Vegas
Real Estate •
Las Vegas Homes •
Las Vegas Condos •
This site designed and maintained by
Bill Smith, webmaster
Prudential Americana Group, REALTORS'®
does not discriminate in the renting, leasing, or
selling of housing or otherwise make housing unavailable
because of race, color, religion, sex, handicap,
familial status, or national origin.
your property is currently being managed by a licensed
professional, we are not suggesting that you dissolve
your present agreement.
Las Vegas real estate, Las Vegas Real Estate, Las Vegas Homes, las
vegas real estate, real estate, Real Estate, Henderson, North Las
Vegas, Summerlin, Clark County, Home Buyer's Tips, Steps to
Ownership, Home Seller's Tips ,Las Vegas Relocation Guide,
First-Time Home-Buyer, For sale by Owner, For Sale By Owner, homes,
condos, new homes, realtor, homes, agent, Nevada, Las Vegas home