8 Reasons you should consider Buying a Home in Scottsdale

Buying your first home may seem like the route you should take – you've listened to family, friends and co-workers – all who extol the virtues of owning a home in Scottsdale. But with all the advice that owning a home is the best thing you could ever do for yourself besides get an education, you still wonder whether it's the right thing to do.

Being skeptical and having reservations is normal, especially when you consider this will be the biggest thing you've ever purchased in your life up until this time.

The more you know about this process, the less intimidating it can be for you. So to understand why most anyone says owning a home is a good idea, here are 8 reasons why they're correct and why you should seriously consider purchasing a home in Scottsdale.

Pride of Ownership

Let's face it – we take pride in things we own and are more inclined to ensure they stay in optimal condition. In regard to Scottsdale homes, ownership means you can paint the walls whatever color you like and decorate the home according to your tastes. Owning a home in Scottsdale also gives you and your family and sense of stability and security…it's an investment in your future.

Appreciation

Real estate in Scottsdale and elsewhere consistently appreciates despite the fact that real estate markets move in cycles – sometimes up, sometimes down. But if you plan to own your Scottsdale home for the long term, you will likely see an overall appreciation in your property. The House Price Index from the Federal Housing Finance Agency breaks down changes in home prices by region and metropolitan area.

Mortgage Interest Deductions

Owning a home in Scottsdale also offers many tax advantages and serves as a great tax shelter. Mortgage interest is fully deductible on your federal income tax return as long as your mortgage balance is less than the price of your home.

Property Tax Deductions

Scottsdale real estate property taxes are also fully deductible for income tax purposes for your first home and a vacation home. IRS Publication 530 contains a wealth of tax information for first-time home buyers.

Capital Gain Exclusion

If you have lived in your home for two of the past five years, you can exclude the first $250,000 (single filer) in profit from the sale of your home…$500,000 if you're married. You do not have to buy another home or move up and there are no age restrictions. And, you can exclude these amounts every two years so you could sell every two years and pocket your entire profit.

Preferential Tax Treatment

You also receive preferential tax treatment if you receive profits higher than the allowable exclusion. That profit will be considered a capital asset as long as you have owned your home in Scottsdale for longer than a year.

Paying your Mortgage Builds Equity

Unlike renting where the money you pay doesn't do anything except put a roof over your head, paying down your mortgage builds equity for you. As you pay down a mortgage, more of your payment will be applied to your loan's principal.

Equity Loans

And once you have built some equity in your home, you can borrow against it to pay off other debts, make home improvements or simply use it in the event of an emergency. Many homeowners with high-interest credit card debt choose equity loans since the interest is usually much less and tax deductible.

These are just a few of the primary reasons why purchasing a home in Scottsdale is a wise course of action. If you're ready to get started, contact premier Scottsdale real estate agent Mark Mashal today!

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