Colorado Homes - Buyers Guide
Why Purchase a Home?
- It Will be Yours and Yours Alone: Owning your own home frees you from the restrictions that renters experience.
- Lifestyle: Homeowners are a different breed. They are willing to spend more time, effort and money to improve their property and the community, which in turn improves the value of your property.
- Equity Build-up: With each mortgage payment, you are buying
something
tangible. The longer you own your own home, the greater your equity can
potentially be! - Keep Up With Inflation: Not all homes appreciate in value at the same rate; some years are better than others, but real estate historically has kept pace - and usually exceeded - the rate of inflation.
- Income Tax Benefits: All interest paid on a mortgage is deductible for state and federal income tax purposes. State and local property taxes also are deductible.
- Return on Improvements: As a homeowner, you can recover all or part of the cost of the improvements when you sell your home.
- Trade-up Value: Even if your first purchase isn’t
your “dream home”, you will be working your way up to that possibility
when you buy a home. With appreciation, you are building equity that, one
day, will make your dreams a
reality. - Security for Retirement: Unlike rent, which goes on forever, the mortgage on your home will someday be paid, providing you with “rent free” living for your retirement.
- Investment Property: For some homeowners, second houses
or condominiums are proving to be good investments as income producers and/or
tax shelters. As the owner of investment property, you can enjoy not only
extra income, but also additional tax benefits from the depreciation allowance provided under present tax laws. - Interest Rates May Be Deceiving: Because the interest is tax deductible, the “effective” interest rate is lower than the note rate.