Its true what they say about home prices – we’ve been experiencing this in Ventura County for about a year now, more or less depending on the community. This article about home prices shows that this trend is happening nationally. There are a few reasons for that, but the biggest I see is that inventory is still pretty limited. That is compounded by a large number of buyers that have been unable to find a home since they began their search in the past several years. The number of buyers ready to buy is much more than the homes available.
Some people suggest that its better to rent, and that not everyone is “meant” to be a homeowner. They argue that homes aren’t really intended to be an investment. I agree that buying a home may not be best for some people, but most people can benefit. Here’s why.
First, fix the price of your housing NOW. Inflation works against you usually. The price of your food increases, rents increase, the price of gasoline and so on. But when you get a 30 year fixed mortgage, the price of your housing is fixed until you pay it off. Of course, you should project for costs such as a new roof after 20-30 years, new water heater, and other repair costs as you go along, but those costs aren’t much weighed against the savings you get in the long run. Remember, after 30 years, your mortgage payment goes away!
During the 30 years of homeownership, our current tax system allows those who qualify (many of us) to deduct mortgage interest. Each year you’ll receive a form form your mortgage bank called a 1098. When you file your tax return, there’s a place to claim that 1098 deduction.
When you die, hopefully your home is paid off and someone in your family can benefit from that valuable asset.
If you’d like to know the value of your home, fill out the form on this website or contact me.