No matter how hard you work, your boss isn’t going to give you as big of a raise as buying a house will. Homeowners are worth 44 times more than renters. Here’s why:
You are able to deduct your mortgage interest on your taxes up to a $500,000 loan amount. This is a huge advantage especially to high income earners that don’t have many deductions. Buying a home can potentially add thousands of dollars back into your pocket and let’s face it.. you know how to spend it better than Uncle Sam.
Be sure to check with your CPA or tax professional on how much buying a home will impact you.
Your Home is a Savings Account
When you’re paying rent your money goes up in smoke faster than Cheech and Chong. When you buy a home your money goes towards the principal and interest of your loan. Homes are typically a long term investment. Can you imagine how much you’ll save over the course of 5, 10, or 15 years?
Since 2012 home prices have been trending upwards. Most experts believe that trend will continue, especially with wage increases and inflation being reintroduced.
According to Neighborhood Scout homes in the Sacramento area have increased 121.18% since 2000. Let’s say that trend continues over the next 18 years as well. If you were to purchase an average price point home in the Sacramento area ($335,509, also according to Neighborhood Scout), you would gain $406,570 in equity. Not bad, eh?
You can see why home owners are more wealthy than renters. The best part? It’s all money you’re already spending towards rent.
Reach out to us with any questions you may have or start your home buying process by clicking apply.