Tuesday, May 13, 2014

Financial Reasons to Buy a Home in Northern Virginia

More and more Americans are realizing that buying real estate is the best financial investment— over stocks, gold, and savings! But what are the real financial reasons behind that decision? Aside from building long-term wealth, Northern Virginia homebuyers can be assured they're making the best decision based on tax benefits and inflation. According to a new Harvard housing study, called The Dream Lives On: the Future of Homeownership in America, the benefits of owning a home far outweigh those of renting. If you're not yet convinced (or just need some reassuring) below are a few of the financial reasons to buy a home in Fairfax, Falls Church, Alexandria, or Arlington this summer:

The Best Investment
A recent Gallup poll found that across all income levels and age groups, from 18 to 65 years of age, the belief that buying and owning a home is the best long-term investment prevailed. Building your wealth in Northern Virginia real estate is a great financial decision and the Harvard study agrees, stating:

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.” 

Costs of Renting vs Owning
It's an age old question— Is renting better than owning? It seems more Americans today would tell you no. The costs associated with renting are rising, in places at a higher rate that real estate prices and mortgage rates. Consider this, whether you rent or buy, you're still paying a mortgage. If you choose to buy a home in Northern Virginia, you're paying down your own principal— whereas with renting, you're paying your landlords. You are paying for housing either way, but putting your money toward your own mortgage is a better use.

Savings of Owning
You may not have considered it, but owning a home is a means of "forced savings." The Harvard study stated that many people have trouble saving and yet still have to make a house payment. By owning a home, they are "forced" into saving (given the benefits and long-term investment of NoVA real estate) and less likely to put off saving to another day.

Do you see the benefits of owning a home in Northern Virginia? I'm happy to help you find a home that meets your homebuyer wish list and at the right price! Start building your future and your finances by making the decision to buy a home today. 

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

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