Advantages of owning a house

> Advantages of owning a house Advantages of owning a house The current mortgage interest rate is at a low point. People who can afford to buy a house now, it's time to seriously consider buying a house...

> Advantages of owning a house Advantages of owning a house The current mortgage interest rate is at a low point. People who can afford to buy a house now, it's time to seriously consider buying a house. What are the benefits of buying a house? Analyze the following points for you: 1) You can save taxes by buying a house. The interest on the home purchase loan and the real estate tax you paid can be deducted from your annual income. Suppose you bought a house at the end of last year and applied for a 30-year bank loan of 160,000 yuan with an annual interest rate of 4%. January 1 this year is the first payment date. Then the loan interest paid throughout this year is about $6,349. These interests plus the real estate tax paid can be deducted from your total income this year, which can reduce the amount of tax payable. 2) Force yourself to make a deposit. Buying a house with a loan is like opening a savings account. Part of the monthly payment is the principal. The more principal you pay, the more home equity you have. In addition, the value of the home will increase. This home equity, like a savings deposit, will increase more and more. 3) There will be more stable housing expenses. Anyone who has rented a house should know that rents almost follow price increases. If your home purchase loan is a fixed-rate plan, then your monthly mortgage payments will be almost fixed during the loan period. 4) Have higher autonomy. Renters will always be subject to landlord restrictions. If you own your own house and want to make some home improvements, change carpets, or curtains, you can make your own decisions. 5) Buying a house is the best way to invest. Based on conservative estimates (calculated based on long-term housing price data in the United States over the past century), the annual appreciation rate of a house is about 5% a year. Let’s do a simple calculation: Suppose you buy a house with a loan, buy a house worth 200,000, and put down 20% of the down payment, which is 40,000 yuan. If the house increases by 5% after one year, it becomes 210,000 yuan, and you can earn 10,000 yuan after selling it. Calculate, what is the return on investment? It can be easily calculated to be 25%, because you only invested 40,000 yuan and earned 10,000 yuan. Although you have to pay mortgage interest, the interest payment can be offset from the use value of the house, such as as your own housing expenses or rental income. Also, this is calculated based on the long-term average. Between 2003 and 2007, due to the imbalance between supply and demand in the housing market, housing prices rose too fast. Homeowners who bought a house at that time but have not sold it now should have the spirit of long-term resistance. Housing prices will rise back one day. No one can predict the best price point. However, according to historical housing price data, 5-7 years is a boom-and-bust cycle, and the current low-interest loan market is more beneficial to home buyers. Owning your own home has the above advantages. The current home loan market is more favorable to home buyers. People who plan to buy a home should consider taking action. If you have any questions about real estate, you are very welcome to call my hotline (480) 612-4545 or email to Rich@RichLiao.com