80 Percent of Americans Unwilling to Buy a House

     Incredibly record low mortgage rates and low home prices aren't enough to encourage Americans to go through the process of buying a house. Even as the market has slightly picked up, still four of five Americans will not buy a house or even refinance their mortgage. A major factor contributing to this is the lack of jobs.

     Economists expected 125,000 new jobs in August, but we were only given 96,000, according to the Labor Department. The unemployment rate fell to 8.1 percent, but only because more discouraged workers left the labor force. So that doesn't really say much. Only workers between the ages of 18-34 were slightly more likely to invest in housing over the next year.

     With record low interest rates, Union Plus launched an awareness campaign for Union members to learn more about the advantages of buying a home. "With only 18% of working families willing to invest in buying new homes, what this tells us is that we need to help working families feel confident about investing in housing" says Union Plus President Leslie Tolf. Confidence comes in knowing the benefits of owning a a home.

APPRECIATION- the largest benefit is appreciation, and right now that's a much better bet than it has been in years. Appreciation occurs when the value of a home increases due to supply and demand, home improvements, and other factors. It acts as interest on an investment. It taps as equity you can use for other investments like starting your own business. sending your kid to college, or other possibilities.

     Acquire enough equity and you can upgrade your house, move to a nicer neighborhood, or even downgrade and save the rest for retirement. many homeowners rely on equity as they nest egg to use during retirement.

TAX BENEFITS- Homeownership is the mother of all tax shelters. The mother of all tax breaks is the deduction for mortgage loan interest. Mortgage interest payments are most of the bill on your early years mortgage.

     Just as big as the capital gains exclusion, married taxpayers who file jointly get to keep up to $500,000 tax free from the sale of their home used as a principle residence for two of the prior five years. The amount is halved for singles, or marrieds filing separately.

     What is also deductible is the interest on a home improvement loans, home loan points, property taxes, home-based business expenses, and some selling and moving costs.A tax professional can tell you everything in full.

YOUR CASTLE- Your home is your castle, you can reconfigure it anyway you please. As long as you are in compliance with local zoning rules and laws, you can do all you want. However, none of these benefits are available if you rent, or live at home.

Post a Comment