Manny S. Rizzuto

Mortgage Consultant NMLS#: 145229

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Cell: 908-334-7182
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Whether you’re a recent college graduate or have spent some years working and saving, making your first home purchase may have crossed your mind. Thoughts about the current real estate market, the affordability of a home, and the timing of being a first-time buyer may have quickly followed as well. However, buying a home is more attainable than you think and can be a valuable tool in building your net worth and overall wealth. 

The Earlier The Better 

The earlier you start, the earlier you save. EMIs (equated monthly installments) are lower when you opt for a longer tenure of loan. By opting for a longer loan early on, you’ll be able to take advantage of low monthly payments when you need them and eventually repay the loan or increase the EMI amount as you become more financially stable in later years. 

Studies have shown that those that purchased their first home in their twenties had an average of $10,000 left on their mortgage at age 60. Those that waited until their thirties averaged around $50,000 but typically purchased more expensive homes. 

Tax Breaks

When you take out a loan to purchase a property, you will be eligible for a tax deduction against the interest paid on the loan. If you itemize on your income taxes, you can 

deduct all or a portion of your mortgage interest and property taxes.  

You’re also eligible for a big exclusion in place to help reduce your capital gains tax when you’re ready to sell.  

Investment Potential 

If you buy property in a developing area, chances are that the property will yield a high return within a few years. Spending those same years renting a property will put you at a disadvantage when you’re looking to buy. The home that you could have bought in the developing area will now be selling for a lot more in the recently developed area, leaving you paying a much higher price for the same property. Worst case scenario? The appreciation value will be slower than expected but investing in property is one of the safest investments you can make. 

Homes Appreciate Over Time

Historically, the value of homes has increased over time. While their appreciation can take years and you may experience some downturns, the overall trends are consistently positive.  

And when the time comes to sell, any return on your investment is yours, not your landlord’s, to keep.