BuyIncomeProperties.com
Your #1 Income Property Resource.

 No Money Down Real Estate Investing Course
Learn How To Buy Income Properties Without Risk, Good
Credit, Money Or Tenants!

Click here for more information

 Welcome to BuyIncomeProperties.com! Visit the Real Estate Investing Forums.


Real Estate Articles 
 
 Real Estate 
 Homeowners
 Second Home
 Success Stories
 Rentals
 Real Estate Q & A
 Real Estate News
 Real Estate Law & Policy
 Money Making Ideas
 Home Improvements
 Tax and Insurance
 Appraisal and Inspection
 Log Homes
 Mobile Homes
 Home Buyers
 Constructions and Home Buildings
 
 Real Estate Investing 
 Foreclosure
 Vacation Home
 Rental Property
 Preconstruction Investment
 Marketing Secret
 Joint Venture
 Land Investment
 Lease Purchase
 Probate Real Estate
 Real Estate Clubs
 Short Sales
 No Money Down Investing
 Flipping
 Fixer Uppers
 Resort Home
 Loft Apartment
 Property Development
 Tax Incentives
 Investing Strategy & Tips
 Real Estate Wholesale Property
 How To Articles
 Subject To
 Real Estate Books
 Apartment Investing
 Commercial Real Estate
 Residential Property
 Hotels and REITs
 1031 Tax Deferred Exchange
 Investment Property
 Real Estate Advanced Techniques
 Trust Deed Investments
 Creative Home Buying
 Wholesale Real Estate
 Real Estate Auctions
 Tax Lien Certificate
 HUD Homes
 Real Estate Regional USA
 Austin, Texas
 Houston
 Colorado Springs
 Florida
 Boise
 Reno, NV
 Landlord
 Rehab
 Market Analysis
 Property Management
 Condo Conversion
 real estate guru
 Bank Foreclosure
 VA Homes
 Buy To Let
 Rent to Own
 Tax Deed
 Stop Foreclosure
 Retirement Planning
 Real Estate Investors
 International Real Estate
 Canada
 india
 United Kingdom
 Real Estate Seminars
 Negotiating
 Condo Hotel Investments
 Partnerships
 NNN Properties
 real estate notes
 Real Estate Education
 REO Properties
 Life Estate
 REIT
 Income Properties
 
 Mortgage and Finance 
 Mortgages
 Mortgage Leads Generation
 Mortgage Leads - Leads Mortgage
 Mortgage Marketing
 Creative RE Financing
 Hard Money Lender
 Debt Consolidation
 Income Property Financing
 Home Equity
 Credit Repair
 Mortgage Tools
 Home Construction Loan
 Commercial Loans
 Owner Finance
 Private Lenders
 Discounted Notes
 Assumable Mortgages
 Seller Financing
 Equity Lines of Credit
 
 Real Estate Pros 
 Real Estate Agent and Broker
 Mortgage Agent and Broker
 Real Estate Marketing
 Real Estate Consultant
 
 Real Estate Resources 
 Mortgage Foreclosure Example
 Mortgage Origination forms
 Property Transfers
 Tenancy Agreement and Form
 Internet and Online
Search


Mortgage and Finance : Home Equity Last Updated: May 14th, 2012 - 22:24:01


Home Appreciation in Long Term

 
Email this article
 Printer friendly page

Over time, your home will appreciate in value. Home equity starts with a healthy down payment and fixing your mortgage payment, and is built by way of general appreciation and the repayment of mortgage debt. This is a simple concept, but it takes a long-term perspective in order to see its value.

Even if you bought at the top of the market prior to the housing crash, in the long run, the value of your property has a good chance of recovering. This is a difficult concept to grasp, especially in markets where housing values have crashed 30 percent or more. Keep in mind the declines are driven by extreme economic circumstances that will not remain the place forever; they do not invalidate the concept of long-term appreciation.

Home appreciation will return, as will the credit markets, and along with that, the ability to borrow against your home equity. If you work hard to pay down your mortgage debt, you will become naturally resistant to these forces, since giving in will undo what you worked so hard to achieve.

When you sell your home, the federal tax law currently allows a married couple up to $500,000 to be taken tax-free ($250,000 for individuals). This enhances the appreciation component, especially in retirement. A married couple can downsize and sock away half of million dollars to help fund their retirement years.

While appreciation is nice, don’t count on it as your only source of retirement – you have to live somewhere. The housing crisis has changed this, but prior to the crash, too many home owners decided to forgo saving for retirement because their home equity gave them the illusion of wealth. Stick with this simple concept: your home is not a vehicle to fund retirement. If you do this, you’ll be motivated to save and any appreciation in value will be icing on the cake.

If you understand home ownership in the context of hedging inflation and providing appreciation, the cost will be minimized and your chances of producing wealth will be maximized. You will enjoy the benefits of a fixed monthly payment, adding to it as your income increases over time, and you’ll own your home to own it. It will never own you.

INSIDER TIP: Don’t Get Caught Up over Tax Benefits

The mortgage-interest tax deduction should not be listed as a primary reason for home ownership. Tax benefits are inherent to the equation of your net monthly housing cost as a home owner, but they don’t merit buying home on their own accord. From a financial standpoint, market conditions, long-term appreciation potential, and the cost of all things associated with home ownership (including tax benefits) are to be taken together in the buy-versus-rent decision. The tax benefits associated with your mortgage are the least of these because they wane over time as you pay down your debt (since your interest charges will decline). This is a good thing, since you want to pay your debt – all tax benefits aside!

People seem to get all caught up with the tax deductions a mortgage offers. Some people want to get a larger mortgage because they need the tax deduction. That didn’t make any sense! If you tax rate is 30 percent, ten you want to spend one dollar to save thirty cents? Sounds like you’ll be spending an extra seventy cents. You get the point!
 


 

Do you own real estate articles or stories and want to share with other investors? 
You have chance to win
$100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:  articles@buyincomeproperties.com

 

© Copyright 2001 - 2010 by BuyIncomeProperties.com            Page copy protected against web site content infringement by Copyscape   

 


 

Visit Real Estate Forums for every real estate investing topics!  Enter Here

    

Top of Page



Home Courses Real Estate Forms Income Properties For Sale Forums CalculatorReal Estate Education    


Copyright © 2001 - 2010, BuyIncomeProperties.com. All Rights Reserved. Privacy Policy in Observance.