Four Reasons To Consider Buying Your First Home

Why should I look into buying my first home?  Let me give you 4 quick reasons:

  1. Increase net worth – In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was $4,000, while that of homeowners was $184,400.  A home plays a huge part in your financial future.
  2. Tax deduction – One of the largest tax deductions available is the amount of interest paid on a mortgage.  On a $150,000 loan, at a 5.5% interest rate, you can write off as much as $8,000 as deductions.  Consult your tax adviser to determine your status.
  3. Long-term Appreciation – Over the last few years, home prices have corrected and become more affordable.  While that is good news for buyers, it has overshadowed the long-term appreciation on a home’s value.  From 1950-2002, US home prices appreciated at an annual growth rate of 4.8%.  If you only use a 3% appreciation rate on a home purchased today at $150,000, that home will be worth $364,000 in 30 years.
  4. The government is handing out $8,000 to first-time buyers if they purchase a home and keep it for 3 years.


Brandon is a branch partner at Alcova Mortgage. He enjoys doing his taxes, firewalking and competitive eating, but not necessarily in that order. You can reach him at, or 877-552-7150.

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