The Benefits of Homeownership

Often I have a conversation with home buyers about the return on their money related to homeownership and it's such an important computation for prospective homeowners to understand so here is some valuable information to help you determine if buying a home is a good investment.

According to the National Association of REALTORS a homes value appreciation average 4.5% annually.

That's sounds like an acceptable rate of return but it gets even better. Since you are unlikely to be paying cash for your home the actual investment is the amount of money you invest (your downpayment.) To explain in simplified terms let's say the house cost $100,000 and you put down $10,000. In an average year, your home has appreciated to $104,500 but that's not of a $100,000 investment. That's of a $10,000 investment. In other words, in one year your $10,000 has grown to $14,500!

Just as important is the tax savings. Your mortgage payment is made of principal, interest, taxes and insurance (PITI.) Of that payment, the interest and taxes (which represents most of your payment) are deductible from you income tax providing you with a great tax deduction.

Buy a home, enjoy living in it and enjoy the financial benefits. Call me today to get started! 512.589.7988.

And, I want to be your REALTOR®! If there is any information you would like regarding relocating to the Austin area, let me know. You can contact me at robin@robinscottrealtor.com, 512.589.7988 or just comment on this blog entry.

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Buying or selling? Hire an experienced professional. Call Robin Scott, Broker at 512.589.7988.

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