Financial advantages of buying your own home include: Income tax deductions for property taxes and mortgage interest Prospect of increase in value over the years
Real estate prices have varied considerably from one area to another, with the economic boom of the late 1990s figuring prominently in the equation. Low unemployment, more discretionary income, rising land values and construction costs, and low inflation have all been contributing factors. The real estate market is cyclical: A drop in prices eventually attracts new industries and turns into recovery. At one point the farm states may be badly hit, but prices may be skyrocketing on the East and West coasts; then the Southeast sees booming values while the rust belt experiences what stock analysts would dub a “stabilization” or “correction.” With the stock market boom and the advent of e-commerce, the late 1990s and the emergence of the 21st century created many new millionaires in the United States, a designation not nearly as uncommon as it was years ago. Property values in high-tech areas and major cities, such as California’s Silicon Valley and parts of New York City, have exploded. What would cost a modest $150,000 in a small Midwestern town may be worth well millions of dollars in those areas. In general, however, it’s almost always a good time to buy, because even minimum appreciation and tax savings will be a bonus.
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