2016 is here and in full swing. Most people look at the new year as a time to start fresh, set goals, and experience another year full of changes and positive energy. This year could be the year you land your dream job, save a little more money, or even start working on that perfect body, but does your list include maybe purchasing your first home? Or even moving to a new city? If that's the case here are top reasons that millennials should be purchasing homes this year.
- It's an investment in your future. Instead of paying rent to your landlord every month, and having nothing to show for it, paying a mortgage off every month does have something GREAT to show: your very own home.
- Two words: resale value. Don't forget about this! As the market inflates and grows, so does your homes value. As times change and possibly your job location does, you can always sell later on and make a profit.
- Did someone say tax breaks? Mortgage interest is deductible from your income tax, lowering your tax burden to Uncle Sam. And homeowners usually don't have to pay a capital gains tax when they sell if the property value increases by less than $250,000 and if the home has been occupied as a primary residence for more than two years. That's a benefit that trumps even a very good IRA or other tax-deferred retirement plan, Via says.
- Home ownership has emotional benefits. Homeowners are more likely to be invested in the local community and develop interpersonal relationships that create a reliable support system than those who rent. "Although it is not a primary benefit for millennial homebuyers, there is also a sense of pride that homeownership invokes," says Mike Hardwick, president of Tennessee-based Churchill Mortgage. "Through the investment of a home purchase, millennials can play a key role in restoring faith in the American dream and preserving it for decades to come."
- Low interest rates. Borrowing to buy a place to live is seen by banks as a much safer investment than credit cards, and interest rates are still at rock bottom. "It is hard to qualify mortgage debt as a bad financial decision these days," Via says.
- Supplement your retirement income. As millennials contemplate buying homes, Via says they should think about the future. They'll benefit from having a home as a storehouse for retirement funds, and their homes will likely be paid off by retirement, allowing them to tap into home equity to fund retirement benefits.
Source: http://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/09/22/why-buying-a-home-is-a-smart-investment-for-millennials
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