There are a number of personal and emotional reasons to buy a home. But there are also some strong financial reasons to make the investment. Here are just a few of those reasons:
Increase Net Worth: Few things have a greater impact on net worth than owning a home. In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was just $4,000 compared to homeowners at $184,400.
A Big Tax Deduction: One of the largest tax deductions available is the amount of interest paid on a mortgage. In fact, a $150,000 home at a 5.50% interest rate can add up to approximately $8,000 in first year's interest. This amounts to a significant savings - effectively reducing the amount of a homeowner's monthly mortgage payment.
Long-Term Appreciation: Over the last few years, home prices have corrected and become more affordable. While that's good news for potential buyers, it has overshadowed the long-term appreciation of a home's value. The reality is, despite market ups and downs between 1950 and 2002, US home prices appreciated at an annual growth rate of 4.8%. Even if you calculate a modest appreciation of 3%, a home purchased today for $150,000 will grow in value to $364,000 over 30 years.
In addition, don't forget that the government is offering a tax credit of up to $8,000 for first-time buyers through June 30, 2010. The tax credit has also been expanded so that qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years can receive a tax credit of up to $6,500.
Hi Nevin. For the reasons you mentioned, today's market would seem to be the "sweet spot" for buyers with the resources to purchase today.
Posted by Richard T Dolbeare, R(B), ABR, CRS, RSPS BS/MS - Engineering Hawaii Dreams Today (Keller Williams Realty) over 2 years ago
Aloha Richard! Nice that you are living in paradise! Way to go my man! Thanks for visiting my blog
Posted by Nevin Williams, San Diego's best mortgage pro! (First Priority Financial, San Diego jumbo & conventional ) over 2 years ago
All great reasons to buy a home these days! (ps love your "surfer dude")
Posted by Renee Burrows - Las Vegas Real Estate - (702-580-1783) www.ShackDiva.com (BrokerThe Force Realty-REALTOR-Estate-Probate-REO-Short Sale) over 2 years ago
Renee - Too many great reasons to NOT buy a home! Thanks...I have a cool GIF of a guy surfing a wave but it is motionless on AR posts
Posted by Nevin Williams, San Diego's best mortgage pro! (First Priority Financial, San Diego jumbo & conventional ) over 2 years ago
There are a number of personal and emotional reasons to buy a home. But there are also some strong financial reasons to make the investment. Here are just a few of those reasons: 
Hi Nevin. For the reasons you mentioned, today's market would seem to be the "sweet spot" for buyers with the resources to purchase today.
Aloha Richard! Nice that you are living in paradise! Way to go my man! Thanks for visiting my blog
All great reasons to buy a home these days! (ps love your "surfer dude")
Renee - Too many great reasons to NOT buy a home! Thanks...I have a cool GIF of a guy surfing a wave but it is motionless on AR posts