The benefits of homeownership

 "Welcome Home!" Words can't the describe the joy of owning a home: a place that you can decorate and fix up according to how you want it and no landlord can stop you. You are building equity, you’ve made the biggest financial investment you’re likely ever to make, and it’s relatively low risk and high return.

Why pay someone else’s mortgage?

Most landlords increase the rent every year, while the payments on 30-year fixed mortgage remain the same during the duration of the loan. Do you know that if your rent is $1500/month and you invested the money instead, at 5% interest, in 10 years you would have saved $232,923?

Mortgage rates

Many people are hesitant of making the move to purchase their first home because they believe they cannot afford it. With mortgage rates at all-time low it might be easier to own a home. Also, some forms of financing, such as FHA or VA, may make your home even more affordable.

Even if you are not planning to buy a home now, it’s good to consult with a lender who will discuss different financing options and find the right one for you.

Homeowner Tax Advantages

Great News: Property taxes and interest payments on a mortgage for an owner-occupied home are currently tax-deductible which means your annual taxable income could be substantially reduced. Also, if you occupy the unit, you have home exemption (on Oahu the basic home exemption is $100,000; if you are 65 years and older the home exemption amount is $140,000). 

To find out about tax advantage, consult your CPA, tax preparer, or an attorney.

Home Value Appreciation

Home improvements and appreciation may increase the value of your home. If you decide to sell the home, the profit you make is tax free up to $250,000 if you’re single and $500,000 if you’re married and file taxes jointly.