Invest in a Home Now--Gain Long-Term Advantages

Many homebuyers who come to me seemed surprised to learn that purchasing a home comes with loads of long-term advantages. Their immediate need could simply be finding a home with a shorter commute to work or that’s located in their child’s current school district. Others may be thinking about having enough bedrooms and bathrooms. Long-term investment advantages apply to any home purchased. Come, together we’ll explore these advantages.

Long-Term Investment Advantages for Homeowners

The four key benefits include appreciation, home equity, tax deductions, and deductible expenses. 

Home Appreciation

Real estate prices naturally rise and fall but there’s an excellent likelihood that as the years pass, your home’s value will increase. This increase is known as appreciation. Here’s how appreciation is an advantage to a homeowner:

Because of appreciation, a homeowner choosing to sell their home will frequently be able to sell their home for a profit.

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Home Equity

The purchase of a home is an outstanding way to build equity. As you pay your mortgage payments, you are reducing what you owe while at the same time, your home gains value. In comparison, when you purchase assets with a loan such as vehicles, furniture, or electronics, each of these items lose value as you make payments.

Building equity increases the amount of money you have in your home that you may be able to use now or in the future. When you have equity you can borrow from this equity as a loan, invest it, build long-term wealth, or sell your home for more than you owe and keep the difference. Here’s what to remember:

Building equity gives you and your family an added layer of financial stability.

Tax Deductions

Some of the expenses related to the taxes paid to the government are eligible tax deductions. The mortgage interest on your main residence, and if you have a second residence, are eligible. These amounts can total thousands of dollars in savings.

The interest on home-equity loans or a home-equity line of credit are deductible if the funds were used to substantially improve the home. Here’s what’s essential to do:

Talk with your accountant or tax preparer about all of your options for eligible tax deductions related to your home(s).

Deductible Expenses

A tax-deductible expense lowers your taxable income. Examples of these expenses can include: mortgage interest, home-equity loan interest, discount points, mortgage insurance, property taxes, and home office use of space for homebased businesses.  

Necessary home improvements, defined as those to accommodate someone with disabilities or improvements due to medical reasons, may also qualify as a deductible expense. Save your receipts and discuss these improvements with your tax preparer.

In Summary

Making the decision to purchase a home is a good long-term investment. It’s my pleasure to work with you to find your best investment plus a home that’s perfect for your family. Schedule an appointment to get the conversation started.

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers and was the #2 Top Producing agent in 2020 citywide. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.