For most people, purchasing a home is the fulfillment of the American dream. Being able to settle down and establish a safe environment for a family is what inspires millions of Americans to start house hunting and make this major step in their lives. Homeowners know all about the benefits of buying a property, but what about you? Do you know what makes purchasing a home one of the best financial investments you could make?
Real estate appreciation is the increase in a property’s value over a longer period of time. When one property appreciates in value over time, it becomes a greater source of financial security for its owners. And, as the family grows, appreciation opens up the possibility of selling the first property and buying a bigger and better one, if need be. This is by far one of the biggest benefits of buying a property in NYC! However, for purchasing property, learning when is the best time of the year to buy a property in NYC is of utmost importance.
The phenomenon of the growth of a property’s value happens because of various factors, such as:
Growth in local population – results in increased demand for housing, which isn’t an unknown fact to people who are living in NYC.
Fiscal inflation – increases only the value of quality properties.
Property market drivers – the arrival of shopping malls, the proximity of hospitals and educational institutes, public transport facilities, and any infrastructure project that can boost the overall quality of living in a specific location.
Property improvements – any kind of home improvement can increase the value of that property.
Both low-cost and expensive ideas can increase the value of a property.
For New Yorkers, purchasing a property is one of the best decisions they’ve made in their lives. The proof of this can be found in the fact that between 1997 and 2007, the median sales price increased 247.3 percent, from $239,000 to $830,000! While home prices across the country have decreased by 2.7% at the end of 2006 (compared to the end of 2005), home prices in New York are showing stability.
When deciding between buying or renting a home, it is important to take into consideration the equity. Home equity is the current market value of a home, minus what you owe. It refers to the amount of a home’s value that you actually own. For example, if your home is worth $250,000 and your outstanding mortgage balance is $100,000, then you have $150,000 of equity in your home.
One of the benefits of buying a property is that it will help you build equity. Building equity is a long term strategy for building wealth – the more equity, the better! The money can be used for future endeavors, such as buying a new property, funding your retirement, or paying for other life events. Building equity can be done in two ways:
Appreciation – with the growth of a property’s value, home equity will increase, too.
Debt reduction – as you pay down a mortgage, more money will go toward building equity and less will go toward the interest.
When owning a home, you will generally gain equity each month - a portion of your monthly mortgage payment goes toward paying off the house, which builds equity. However, when renting a home, your monthly rent won’t gain you anything – it’s money you’ll never see again. And unlike rent, mortgage payments don’t go up over the years. Therefore, if you buy a home now, imagine how much equity you could have by the time you retire!
People who own a home have a chance to decorate their home the way they want to without the need of asking for permission. Do you want to make your living space more positive by changing the color of the walls, rearranging the furniture, or by knocking down a wall? You can do whatever you want because the home is yours! And remember, smart home improvements will increase the value of your home!
"One of the benefits of buying a property is the chance to remodel and turn it into an ideal home for your family."
Homeowners have much more privacy compared to people who are renting. Sharing walls with other tenants can sometimes be awkward and even annoying. And noisy neighbors aren’t the only ones who have the power of ruining one’s day. Just the fact that landlords can access your private space whenever they want bothers most tenants. Instead of dealing with these unpleasant situations, find your dream home, move with the help of DA Moving NYC, and enjoy the priceless privacy in your new home.
Buying a home is a major step in everyone’s life. Many researchers believe that people gain a sense of stability and security after they make the purchase of a property. Homeownership gives you a chance to finally settle down, establish long lasting friendships and actively participate in numerous community activities. After buying a home, all that is left to do for becoming a proud member of your new community is get a precise moving estimate online and move with a reliable moving company!
Everyone who decides to buy an ideal home in NYC should know there are many tax benefits that could make owning a home quite affordable and profitable. The U.S. Tax Code gives you the ability to deduct the interest you pay on your mortgage, property taxes, private mortgage insurance, and some of the costs involved in buying your home. Suffice to say that the average homeowner typically could get thousands of dollars in tax deductions related to ownership!
"The exact tax benefits you will get from owning a home will vary based on various factors."
With these tax advantages, high monthly rates, and other benefits of buying a property in NYC, many people have abandoned their plan to continue renting and have instead bought a home. Take into consideration all the things listed above and find out whether you want to continue renting or you’re ready to finally become a homeowner.