For many people a home is their most valuable asset. Even considering the free-falling home prices during 2008 and 2009, owning a home is still often the biggest and most valuable asset a family has.
What goes down must come up? Well, that seems to hold true in real estate for the most part. I’ve heard stories of people buying homes for $100,000 for example during our real estate downturn and sell their home for a fifty percent profit in one year. When you are in the real estate market on a consistent basis it is easier to have your finger on the pulse.
There are many who have engaged in flipping homes. They buy a property at a discount, put some money into it fixing it up and reselling for a profit. Then you have the majority who buy their property as a primary home, live in it and work to pay it off. There are also tax advantages (at least at the time of this writing) to owning.
So, does that mean you definitely should own your home? Or are you better off renting?
Over the past 20 years home prices nationwide averaged gains about 3 – 4% per year. That is even during a time of home-ownership boom. However, those statistics can be a little misleading because states like Arizona saw greater gains than those. But Arizona has also seen home prices fall dramatically too when the recession hit.
Matter of fact, there were few states hit harder in the real estate downturn than Arizona.
When buying and owning a home, it often is better to view a home as more than just an investment. Here are a few reasons to own:
Home-ownership offers tax advantages. These tax advantages may require a CPA to figure out but every homeowner knows that the interest you pay can help you come tax time.
Home-ownership is a type of savings. In the future you can have the option of selling your home or doing a reverse mortgage and taking money out.
Statistically, those who own a home tend to have a higher net worth than those who rent. And real estate is usually a good hedge against inflation.
We have a hard time giving any good reasons to rent versus buying a home. However, if you are someone who may move in the near future renting likely makes more sense.
If you are looking to buy a home or sell contact me – I am a licensed real estate agent.
If you own a home, please consider us for your Arizona Homeowners Insurance. Click this link for a quote.
Or call our office at (480) 659-0229 and ask for Gary.