Top reasons why you should buy a new home

Author: Jeff Adams

Author: Jeff Adams

There are a variety of reasons why you should buy a new home although the entire process of buying a new home may appear scary. The pride of ownership may appear emotional and egoistic, but it is undoubtedly the number one reason why people crave to buy a new home. It means you can paint the walls with any color of your choice, turn up the volume on your CD player at will, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security and it is a life-time investment. There may be fluctuations in the real estate market but the fact remains that over the years, real estate value will appreciate.

One important reason for buying a new home is the tax advantage. Home ownership is a superb tax shelter and the tax rates unduly favor homeowners. As long as your mortgage balance is smaller than the price of your home, the mortgage interest is fully deductible on your tax return. Please know that interest is the largest component of your mortgage payment. Please also know real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. If you receive more profit than the allowable exclusion upon selling your home, then the profit will be considered a capital asset as long as you owned your home for more than one year. Capital assets receive preferential tax treatment.

If you carefully study the mortgage reductions, you will find that each month, part of your monthly payment is applied to the principal balance of your loan, thereby reducing your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. Home owners can borrow against a home's equity for a variety of reasons such as home improvement, education fees, medical expenses or starting a new business.

With a new home, there are no unpleasant surprises when you move in as the house is designed completely in keeping with your taste and requirements. You also know exactly how to operate and maintain your home's systems and equipment. If you have questions later, your builder will be there to give you a helpful and accurate answer. From layout to cabinets to carpeting, new home builders offer a wide selection of standard and up-grade options. You can pick and choose what suits your own lifestyle, personality and budget.

The building technology has vastly improved over the previous decades and present day homes are technically better built and with better quality building materials. Modern homes are highly energy efficient, with excellent indoor air quality. From heating systems to roofing shingles and windows, today's building products are of better quality, more durable and often look more aesthetic. In the end, the quality of your home depends on the quality of your builder.

If you buy your new home from a reputed professional builder, your purchase is safe and secure. You know what you get, and you will get what you want. You also know what it will cost today and in the future. Another distinct advantage of a new home is the professional builders offer an after-sales service program and a guaranteed third-party warranty. Your builder will explain how this warranty works so you can be sure you are getting the coverage that you want.About the Author:

Jeff Adams is an author for Real estate Investments. He has written articles Real estate Investment. For information visit our site real estate investing

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