RE/MAX surveyed its 1,200 sales associates across Indiana to rank the top reasons first-time homebuyers are making a purchase. Check out the reasons why buying a home may be beneficial to you!
Sixty-one percent of RE/MAX agents say first-time homebuyers are purchasing for the stability and freedom that comes with home ownership. Many first-time buyers find stability in consistent, fixedrate mortgage payments per month as opposed to monthly rent payments that often rise year after year. And, mortgage payments tend to be less than rent for those purchasing their first home. The stability of owning a home will eventually lead to no mortgage payment, whereas rent payments are never-ending. Freedom is another key benefit to consider – once you buy a home, it’s yours. You will never have to worry about a landlord’s restrictions. According to RE/MAX agents, first-time homebuyers most commonly seek the freedoms of independence, pride of accomplishment, sense of community, the ability to make future plans, and personalization to “make a home theirs” when considering a purchase.
Twenty-seven percent of RE/MAX agents say first-time homebuyers are purchasing for the equity and borrowing power that comes with home ownership. With each monthly mortgage payment, a homeowner is paying a portion of interest, reducing his or her loan balance, and gaining home equity. Equity is the value you own in your home. A homeowner is building for the future – think of it as a savings account with a much higher rate of return. Borrowing power is a benefit you gain as you accumulate equity. When a homeowner decides to refinance their mortgage, for example, equity is the driving force behind borrowing power, serving as collateral. Once a homeowner builds equity, they have the opportunity to borrow against the value of their home.
Twelve percent of RE/MAX agents say first-time homebuyers are purchasing for the tax deductions and appreciation that comes with home ownership. Tax deductions help offset the annual cost of homeownership vs. renting. As a homeowner, you can write off interest you pay on both your home and property taxes, which often results in a larger refund on your personal taxes. Be sure to keep track of each tax-reducing expense throughout the year to take advantage of all tax deductions available to you. Home appreciation occurs over time as the property value of a home rises. According to RE/MAX agents, the best way to add value is to keep up simple interior and exterior maintenance. Think about curb appeal: update color schemes and décor, renovate the kitchen and bathroom for larger investment changes, or finish the basement.
RE/MAX of Indiana is Hoosiers’ real estate market leader with $2.7 billion in annual sales, 73 offices and more than 1,200 sales associates. Founded in 1987, RE/MAX of Indiana helps growing families and businesses through its expertise in residential and commercial real estate, as well as relocation and referral services. Having sold 1.5 million homes in Indiana over the last five years, “Nobody sells more real estate than RE/MAX.”