If you are now renting, have you considered buying a condominium? This kind decision could yield a number of benefits to you while still allowing you to enjoy the same basic lifestyle. Here are some of the major considerations:
EQUITY BUILDUP: One of the nice things about owning real estate is the fact that every mortgage payment you make also reduces the amount you owe. This reduction in principle and the inflation in value of the property over a period of time allows your equity in the property to grow. So, your mortgage payment gives you shelter today and a savings account for tomorrow.
PRIDE OF OWNERSHIP: There is a good feeling to know you own something. There is also greater control over your financial future when you own real estate. You can sell the property or improve it. You can also stabilize life style as well as your pocketbook. When renting you have no control of what your landlord will want to charge you at the end of your current lease. It is not uncommon for a landlord to raise your rent as much as ten percent! With the going rate for a one bedroom apartment in Naperville currently $1,100, landlords know that you can’t pick up and move for less than a thousand dollars so they can bump you up ten percent and you will think twice about moving.
TAX ADVANTAGES: With the recent changes in the tax laws, homeowners are the only people who still have a variety of tax shelters available to them. The interest that you pay on your mortgage as well as your property can be deducted from your annual earnings before figuring your federal income tax. This could mean that $1,500 monthly payment may only cost you $1,000 after the tax advantages are considered. Obviously, it would be very wise to consult an accountant before making any significant decisions or commitments.
TIMING: At the present time, both the home prices and mortgage interest rates are very reasonable and rents are on the rise. If you ever thought about buying real estate, especially a condo, this is a GREAT time to make the move.
ADVICE: Use the advice and guidance of a local Realtor®. He or she is in touch with today’s values and could give you the information and assistance you need.
