The dream of home ownership may be more attainable than you may think. With the cost of homes and mortgage rates at their lowest in 15 years and with the cost to rent steadily rising, it makes more sense than ever to buy a home instead of renting.

 Here are just few reasons 2012 may be the year for you to purchase a home. 

  1. Low Purchase Price/Appreciated Value   - With home prices at the most affordable in recent history, it is almost certain that the value of your home will increase. Currently there are countless opportunities to purchase a home at a fraction of its original cost.
  2. Low Mortgage Rates - Mortgage rates are at an historic low. Current rates make the monthly payments on a 30 year fixed-rate mortgage less than rent and in certain cases rates for a 15 year loan can you even more.
  3. Equity - Monthly rent payments is an expense that has no long term benefit. Monthly mortgage payments allow you to build equity that can be viewed as a savings plan. Often when you sell your home there can be a substantial gain without federal tax implications.
  4. Tax Advantage - Mortgage interest is can be taken as a tax deduction, lowering your income tax liability; no portion of rent is tax deductible.
  5. Budgeting Predictability – In most cases, mortgage payments are the same for the duration of the tern of the mortgage. Rents generally increase on a yearly basis.
  6. Flexibility - Whether decorating or own pets, owning a home gives you the flexibility to decorate as you wish or have the number of pets you wish.
  7. Stability - An advantage of home ownership is the stability achieved by remaining in a community for a number of years. Home ownership affords the opportunity to establish ties to a community, establish long term friendships and children can benefit from the educational continuity of attending school in their community.

These are just a few of the reasons purchasing a home in 2012 may be right for you. Purchasing a home is a big decision and can be overwhelming. Working with a real estate professional can make the process easier. Your real estate broker can work with you to provide options suitable to your individual needs and circumstances and will help you through every step of the home buying process.

-Jan Justice