Information for Buyers

Why Buying a Home Makes Sense

keys

One of the best investments you’ll ever make!

Over time, most homes appreciated at a rate of four or five percent annually. And while a 5 percent rate of return may not wow you at first, especially when stocks can at times appreciate at higher rates, the real rate of return on a home is actually higher than almost any other investment.

For instance, if you bought a $200,000 home with a 20 percent downpayment of $40,000, down and the balance carried on a mortgage, the appreciation of your property in the first year would equal $10,000. While that represents just 5% of the purchase price, it represents a whopping 25% return on the actual $40,000 you’ve spent out of pocket.

Even after taking into account mortgage payments, property taxes and other costs, it’s still a great return, especially when considering that both mortgage interest and property taxes are tax deductible.

Uncle Sam Subsidizes the American Dream


Home ownership is the great American dream for good reason. It’s good for not only the economic fabric of our nation, but for its social fabric as well. And to promote a strong nation and the American Dream, the government makes mortgage interest and property taxes deductible from gross income.

For instance, assume you have a home loan of $150,000 at an 8 percent interest rate. During the first year you owned the home, the interest you paid would be just shy of $10,000, all of which is deductible from your taxable income. And the property taxes you pay are deductible, too.

Economic Stability


There’s simply no comparison to paying rent vs. buying a home when it comes to long-term economic stability. With a fixed-rate mortgage, you know exactly what you are going to be paying next year or 20 years down the road. Plus you’re building equity in something you own.

With rent, costs can only be expected to rise year after year. Even with adjustable rate mortgages, payments stay within a specific range. Renting when you can buy simply doesn’t make good economic sense.

Home Sweet Savings Account


For people who have trouble saving money, purchasing a home, especially one of the many great Myrtle Beach homes for sale, is a great way to save. With each month’s payment, the principal you are paying off is essentially being put away as equity. And while the principal portion in the early years of a mortgage may be small, it and the equity it represents accelerate over the years.

And, of course, as the equity in your home grows, so too, traditionally, does the value of your home, at about 5 percent each year.

With Ownership Comes Freedom


When you rent, you’re pretty much at your landlord’s whims as far as repairs or improvements go. Even if the landlord OKs improvements, they might often be made at your own expense. And it simply doesn’t make good economic sense to spend substantial sums on carpeting, window treatments, painting or other improvements when it’s the landlord who ultimately benefits. But because the landlord is a businessperson looking to keep expenses low, chances are they may be slow to make even critical improvements.

When you buy a home, though, it’s yours to do with as you please. You not only get the benefit of living the way you want to, but the benefit of the increased value of your home that your improvements bring.

More Space to Live

There’s rarely any comparison between the space your rental dollars buy vs. the space home ownership provides. Even buying a condominium will likely provide substantially more room than apartments.

If you’re moving into a new single-family home, you’ll likely have substantially more space inside and out in which to live and play and a great new lifestyle as the result. And few other places offer a better lifestyle than that great coastal living in one of the many great Myrtle Beach homes for sale. The Myrtle Beach experts at Century 21 The Harrelson Group are ready to get you started on your future today.

 

Home and Condo Search