Home buying payoffs you’ll see in the next few years

Homeownership is still a cornerstone of the American Dream. Indeed, 66% of U.S. citizens owned their house as of 2020 and today’s low interest rates make the prospect of being a homeowner all the more appealing.

That said, strong property demand brought about by the pandemic has raised the typical home’s price in May to $287,000 — a year-on-year boost of about 13%.

Needless to say, purchasing a house is a huge investment, but the payoffs are well worth the expense.

Financial edge

A home will cost a small fortune, but it pays handsome dividends. Many experts consider a house as an accelerated savings plan because property prices usually appreciate faster than money set aside in a bank. Furthermore, each mortgage payment you make increases your equity or ownership of your home. Once you’ve built up enough equity, you can borrow against it to finance a new car, generate capital for a new business venture, or even pay for your kids’ matriculation.

Predictable housing costs

Annual rent increases are almost always a given. This is especially true in Washington State, where rent control is illegal, meaning landlords can raise rental rates as much as they want as long they follow certain provisions. If you took out a 30-year fixed-rate mortgage, however, increasing housing payments won’t be an issue as you’ll pay the same amount from the first to the last month of your loan’s tenor. Besides, if you’re spending money on housing anyway, it may as well be your own property instead of a landlord’s.

Excellent tax benefits

First-time homebuyers in Washington State won’t just get down payment assistance and friendlier mortgage terms, they also receive amazing tax benefits. For instance, they can deduct mortgage debt interest from their taxes, which can save them thousands of dollars a year. If you paid less than a 20% down payment and thus have private mortgage insurance, you could potentially deduct your premiums if you itemize your filing. Do you work from home? You can also deduct the cost of putting up a home office.

Sense of belonging

Owning a home means owning a little corner of this great, big world. There’s an enormous sense of pride and security in that knowledge. Putting down your roots is also easier when you have your own home. You get to be part of a community you genuinely love and you can raise your family in a place you’re proud to call home. There are many financial advantages to buying a house, but the feeling of belongingness is truly priceless.

The rock-solid performance of the real estate industry despite a worldwide pandemic is further proof that a home is a worthwhile investment.

Ready to take the leap into homeownership? Allow Coldwell Banker Cascade Real Estate to help you find the ideal property. Our team has access to listings in sought-after markets like Wenatchee, Leavenworth, Cashmere, and Lake Chelan, so you will have plenty of options to choose from.

To get your property search started, simply call 509.888.8887 or reach out to our team via info(at)cbcascade(dotted)com.