10 GREAT REASONS
TO PURCHASE A NEW
- 1. Unparalled Options and Comfort. Today's new homes feature modern appliances and amenities specially designed to add comfort and value to a home plus make life a little easier.
- 2. Energy Efficiency. Today's new homes are 60 percent more energy efficient than homes built in the 1970's. The use of extra insulation, energy efficient heating and cooling systems, thermopane windows, and insulated exterior doors, are just a few of the efficient features that can save you hundreds, maybe thousands of dollars each year.
- 3. Warranty Protection. Most new homes come with a written Warranty on workmanship and materials used so you can rest a little easier when making your purchase.
- 4. Quality of Life. People will spend more than half of their lives in a well designed energy efficient new home.
- 5. Personal Wealth. Purchasing a new home makes good financial sense. With most mortages, you gradually increase the proportion of the home you own, while decreasing the amount owed to the lender. As your equity builds, personal wealth increases.
- 6. Leveraging. A new home can allow you to further increase your wealth through "leveraging". Take a $100,000 home with a $10,000 down payment and a $90,000 loan. If after a few years the home's value increases to $110,000, you would have equity of more than $20,000 (your $10,000 down payment, $10,000 in appreciation, plus the amount already paid on the loan). Therefore, you would have doubled the original amount invested in the home.
- 7. Annual Tax Deduction. With recent tax law changes, a new home is the best tax shelter available. You can deduct mortgage interest and property taxes from your federal and state income tax returns.
- 8. Tax Treatment of Appreciation. Taxes must be paid annually on the interest earned from savings deposits. With a new home, your home appreciation is tax free.
- 9. Nest Egg for Later Years. Tax laws permit a one time exemption of $125,000 appreciation on a principal residence after the age of 55. If you wany to tap your home equity when near or past retirement age, you may without a large tax payment.
- 10. Delay Can Cost You. You should never rush into a new home purchase without exploring all options. However, once you find a new home and a financing package that fits your needs, you shouldn't postpone the purchase in hopes of a better deal. When gambling that interest rates and/or new home prices will fall, the stakes are high and the odds are against you.