Today is the greatest opportunity to purchase a house. Really.
I remember when I purchased my first home in 1992.
We were just coming out of the ‘91 Gulf War recession and interest rates were floating around 9%. Housing sales were starting to heat back up and prices were gaining. I had a friend who was getting married and they each owned a home – their goal was to sell both houses and build their first home as a married couple. I immediately expressed interest in one of the homes and remember the price was $90,000. That seemed so out of reach to me, but after meeting with a mortgage lender, it appeared my monthly mortgage payment would only be approximately $300 more per month than my current lease agreement – suddenly it seemed like it was in our reach. The real kicker was my CPA’s advice – you need that mortgage interest deduction! After we purchased the house, I determined that my tax burden decreased 25% – yes, my annual taxes had an immediate improvement due to the mortgage interest deductions, which the joy of home ownership provided!
However, the financial results were secondary benefits. The house was a dream-come true as my wife and I spent some money to paint and put in new carpet. We then welcomed our first son to the world and brought him home to that house the next year as a newborn infant. I was so proud that day and remember how important it was to bring him to our new home. I will never forget it and was so glad to be a home owner.
Today with new low prices, so many choices, and mortgage rates at an historical low, what are you waiting for? If you are like me and think it’s a dream that is not reality, you might be surprised with what you find as you research the options to own. I have bought and sold 2 more houses since that first house – and it only gets better with each house. I was able to make a profit on that first house, and reinvest that money in the next house tax-free – what a great dream home ownership can be with so many positive benefits!
I would do it all again.
By Tony Jarrett (Regional Vice President, Triad)
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