With tax day quickly approaching, it makes sense to take a look at how home ownership makes “cents”!

1.       Homeownership builds wealth over time.

The number one rule of course is to buy a home you can actually afford!

2.       Homeowners build equity every month.

Simply put, the amount you can sell your home for - the amount you owe= Equity. 

When you make a mortgage payment the amount you owe on your home goes down. Thus, as the years go by, your equity grows.

3.       Multiple Mortgage Tax benefits.

At tax time your benefits include: mortgage deduction, closing cost deductions (1st year) and property tax deduction.

4.        Home Equity line benefits.

Shift your higher interest rate debt to a lower interest rate home equity loan PLUS get a deduction on the interest as well.

5.       Homeowners get Capital Gains Exclusions.

After two years you can keep the profits up to $250,000 (single) or $500,000 (married).

This can be relevant in today’s rapidly appreciating market.

6.        A Mortgage is like a forced savings plan.

Paying your mortgage every month and reducing the amount of your principal is like a forced savings plan. Each month you are building up more valuable equity in your home.

 

7.       Buying makes more financial sense than renting.

In the first few years, it may be cheaper to rent. But over time, as the interest portion of your mortgage payment decreases, the interest that you pay will eventually be lower than the rent you would have been paying. Why pay off your landlord’s property when you can pay off your own?!

Are you on the fence about whether to purchase a new home in the Boise, Idaho area? Consider these important factors..............
Interest rates directly affect the price of the home a buyer can afford.  With interest rates continuing to hold at all time lows, and the predictions of higher rates in 2014 looming, now may be the perfect time to jump off the fence and take advantage of this increased buying power.
How significant is the buying power of lower rates?       Take the example of a buyer qualified to purchase a home for $200,000 at 4.5%. If the interest rate increases to 5%, the same buyer only qualifies for approximately $188,000. When rates jump to 5.5%, the buying power drops to approximately $178,000.  The difference is much more significant than most people think!
With interest rates over the last 30 years averaging close to 9%, and rates as of October 30th, 2013 at 4.125%, why wait?  NOW is the time to make your move!!!!

Are you a “Newbie” to shopping the Boise,Idaho housing market?
While the search for a new home can be fun, it can also feel like a daunting process.  Before deciding to move forward into homeownership, you will definitely want to consider the following factors.

PRICE
Knowing what you can handle financially is the first step toward understanding the commitment of home ownership. This means being clear on what monthly payment you can afford, what funds you will
need for closing costs and how much you will need as a down payment on the home.

TYPE OF PROPERTY
Are you looking for a single family home, townhome, or condominium? 
Consider the amount of space and privacy you are looking for and how much time and effort
you are willing to put into your home and landscape. Also, take into consideration any extra costs like lawn maintenance and HOA fees.
     
CONDITION OF THE PROPERTY
NEW or OLD?  Do you want a home that is move in ready or are you looking to put in some sweat equity?  
As an example, while properties in areas like the Boise North End have character and charm, you will be putting in time, effort, and money to update and maintain the home?

LOCATION, LOCATION , LOCATION!
Where is your ideal neighborhood?  In my opinion, this is BY FAR the most important to factor to consider. People who love where they live and what surrounds them are most happy with their purchase for the long term. Are you attracted to quiet and peaceful like East Boise’s Surprise Valley, or vibrant and lively like the new urban development of Mill Station, near Lucky 13?  Is proximity to work, family and friends important?  What about access outdoor recreation? If you love the Boise Greenbelt and Foothills, then a community like Harris Ranch might be a great fit for you. Some other points to consider are school district, neighborhood amenities and the overall vibe of the neighborhood.

MUST HAVE VS. LIKE TO HAVE
Prioritizing what you MUST have helps you to sort through the emotional process quickly and easily, assisting you in focusing on the real contenders. Is the floor plan and size of the home most important, or are the bells and whistles like granite countertops and fancy tile work your "must haves"? Be honest with yourself. Based on your budget, what are the necessities and what are the extras?

THE Lesson? 
Taking the time to prepare before you rush out the door to look at homes can make all of the difference. By doing your homework and surrounding yourself with a experience team of realtors and lenders, purchasing a home can be an enjoyable experience!  Contact Kim or Merrill at Buckley Group Boise.  We are here to help you find the perfect home for YOU !!