September 4, 2019|Arizona Phoenix homes, Arizona Real Estate, Buy House, Cash offer for houses, Chandler Realtor, Invell Homes, Investing, Sell House
Owning a home is more than just hype; it’s the gateway to long-term and short-term financial success. Long-term, you’ll build an equity nest egg and short-term, you’ll be able to enjoy potential tax breaks and pay yourself instead of a landlord. A home purchase is an investment you’ll be glad you made!
Owning a home can make a huge difference for your financial future, especially for a first-time home buyer. While buying a home can be a transformative experience for you personally, home-ownership can help you financially as well. Home-ownership can lead to building your personal wealth due to home equity, or fair market value, which will likely increase over time based on both the market and any renovations you make to your home.
Arizona is one of the top cities in the country that people are moving to. It is a particularly great place to buy a home because of its warm weather climate, thriving industries, including a strong tech presence, there are no natural disasters and have good universities. Couple that with a bevy of fun and eclectic neighborhoods with wonderful restaurant, activity options, and the affordability of housing for living in the west coast can’t compared to the neighbor states, now you can see why you would choose to purchase a home in Arizona.
Renting in Arizona, on the other hand, can be expensive (not so much as California), and there are few options available. There is a very low vacancy rate and rents are rising faster than wages. This combination creates a difficult market for renters because the high demand and limited supply of rentals available drive up costs. If you can afford to buy a home, turning the cash that you would be spending on rent into payments on a mortgage can make a major difference in your long-term financial stability.
The rental vacancy rate is the fraction of homes for rent that are not occupied.3 In 2017 the rental vacancy rate for Phoenix Arizona was 5.81% according to Census ACS data.
Rental Vacancy Rate in Phoenix Arizona
Trends in Phoenix, AZ Rental Vacancy Rate
There are many reasons owning a home is important, and most of them stem from the fact that a home is an asset and paying a mortgage increases your equity in that asset, which is better than paying rent. A potential increase in your credit score, tax benefits and anticipated growth in the housing market are additional benefits to having a mortgage.
Having a mortgage can help improve your credit score because a home loan adds diversity to your credit profile. Even though a mortgage is a debt, it is “good” debt, because it is tied to an asset (the house). The largest portion of your credit score is determined by your payment history, and making payments on a long-term loan like a mortgage positively contributes to your payment history. As long as you make your payments on time, your mortgage can improve your credit score by increasing your reputation as a responsible borrower.
Owning a home that you can afford carries tax benefits, too. The IRS allows you to deduct the interest on your mortgage from your income taxes, as well as some closing costs and annual property taxes. Tax incentives like these help homeowners build wealth.
The house that you buy is an asset that can go up in value over time. Arizona has long been an attractive real estate market because of geographical advantages like: very close to the west coast, if you like hot weather and hate the snow, this is the place to be, culture diversity, and job growth has being substantially increasing in the tech industry like Intel, Tesla Nikola trucks , Microsoft Smart City (Bill Gates) and not to mention all the other companies that need to support those 3 companies will open 1000’s of more jobs. Arizona is poised to continue to grow with strong business presence, young population and desirable location have strongly factored into Arizona’s home values, which continue to be on the rise.
Buying a house requires planning, including finding out how much house you can afford, what type of loans are available and what the fees are.
Home ownership is a journey that requires a lot of information and support, and Invell Homes is happy to provide both. If you have any questions and would like more information click here to go to my website or feel free to call at 602-892-3000.
