Many young people feel they cannot afford to buy their own home in the Vail valley. They assume that the down payment and the mortgage payments make owning a home more costly than renting.
Although the monthly payments may be higher than your rent during the first few years that you own a home, federal and state income tax deductions on the mortgage interest and the property taxes will reduce your monthly housing costs significantly. Your rent may increase periodically, but your mortgage payment will remain fairly stable, depending on the type of mortgage you have.
Buying a home not only represents great tax savings while you are young—it gives you home equity for your senior years, when it will be most valuable to you. The housing costs of renters who are approaching retirement will be a larger percentage of their monthly income than the housing costs of those who bought their home years before. Most homeowners will have paid off the mortgage by that time and are thus living virtually rent-free.
With today’s low interest rates, the real question might be, can you afford not to buy?
No comments:
Post a Comment