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the REBNY Manhattan Residential Sales Report- 3rd Quarter 2006
7 Reasons to Purchase
1. Tax breaks. The U.S. Tax Code lets you
deduct the interest you pay on your mortgage, property taxes you pay,
and some of the costs involved in buying your home.
2. Gains. Between 1998 and 2002, national
home prices increased at an average of 5.4 percent annually. And while
there’s no guarantee of appreciation, a 2001 study by the NATIONAL
ASSOCIATION OF REALTORS® found that a typical homeowner has
approximately $50,000 of unrealized gain in a home.
3. Equity. Money paid for rent is money
that you’ll never see again, but mortgage payments let you build equity
ownership interest in your apartment.
4. Savings. Building equity in your
apartment is a ready-made savings plan. And when you sell, you can
generally take up to $250,000 ($500,000 for a married couple) as gain
without owing any federal income tax.
5. Predictability. Unlike rent, your
mortgage payments don’t go up over the years so your housing costs may
actually decline as you own the home longer. However, keep in mind that
property taxes,maintenance, common charges and insurance costs will rise.
6. Freedom. The apartment is yours. You can
decorate any way you want and be able to benefit from your investment
for as long as you own the home.
7. Stability. Remaining in one neighborhood
for several years gives you a chance to participate in community
activities, lets you and your family establish lasting friendships, and
offers your children the benefit of educational continuity.
To calculate whether renting or buying is the best financial option for
you, use this calculator courtesy of Ginnie Mae:
>http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH
>
Reprinted from REALTOR® Magazine Online by permission of
the NATIONAL ASSOCIATION OF REALTORS® Copyright 2006. All rights
reserved. www.REALTOR.org/realtormag
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