Home Buyer Bootcamp Part 1 | Why Buy a Home in California and What are the Benefits
WHY BUY A HOME IN CALIFORNIA
I couldn’t be a bigger proponent of home ownership. Owning a home creates wealth. For many people that I know, let’s say they bought a house 10 years ago, chances are that house value has gone up. 10 years ago, if they bought it in 2010 it could’ve doubled in value very easily. I don’t know a lot of other investments that are going to give you that security that a home gives you and be a vehicle for creating such an opportunity of wealth.
CREATING WEALTH VIA HOMEOWNERSHIP
That’s why you should buy a home. Ask yourself, those of you sitting on the sidelines not sure if you should jump in or not, ask yourself, of the truly successful people that are out there, how many of those people that are successful and secure own homes?
Well, the answer is probably all of them. All the people that I know. As a matter of fact, the most secure, stable people that I know, that I look up to, own multiple houses. I would like to impart on you through this home buyer series all the wisdom and knowledge so that you could make that one of your goals and actually attain it. That’s the why.
The benefits are as follows;
The one, for me, that’s the biggest is the security that a home affords. Knowing that I have this great asset and If there were some kind of an emergency I could tap into it. I could sell it. Having a home is like your home wraps its arms around you and loves you as you love it back, I hope, in many cases. The security is a big benefit.
The tax benefit alone is reason enough to buy a home in California. A rough estimate would be on a 400k home that you would save 4-500 a month because of the deductions and or / depreciation expense if it were an investment property could amount to more tax savings. This topic is explored in depth in the next video.
Another big one for me is freedom. Having freedom owning a home, I mean, you can paint the inside purple. I hope you don’t, but if you wanted to you could. If you wanted to plant orange trees on the parkway you could probably plant orange trees in your parkway, which I love the smell of orange blossoms. It’s one of my favorite. Having the freedom to do what you want, to decorate what you want, and then you’re spending the money to improve where you live, to improve your home, and it’s not going to waste. It’s not going to your landlord. We got the tax benefits, freedom.
NO MORE LANDLORD AND RENT INCREASES
A big one, too, is leverage against rent increases. Being a renter, the rents go up every year. Last year they raised my rent $250 in January. I wasn’t really happy about that. When you own a home and you have a fixed rate mortgage, that payment is going to be pretty much set in stone. The only thing that’s gonna go up are the tax and insurance portion of your house payment.
Owning a home has the benefit of leaving a legacy for the people that you love. I don’t know about you, but I surely would like to be in a position to leave my loved ones a legacy, something that would give them a benefit and an edge starting out in their young adult lives. If that’s important to you, taking care of people and paying it forward so to speak, that is a huge benefit of owning a home.
Something that was just kind of brought to my attention by one of my friends when I was just kinda running through what I was gonna say and everything, ’cause this is not a big scripted ordeal, it’s pretty much just kinda, “I’ll jot some ideas down and talk off the cuff,” but one of the things that she referenced was that, for her mother, her mother was able to receive a reverse mortgage.
This benefit of refinancing, she was able to not have a house payment. She basically lives rent free. Now, she does have to pay taxes and insurance, but that’s a righteous benefit. The reverse mortgage has been around for a very, very long time. We don’t expect it to go anywhere. If you’ve got another. If you own a house, you’ve been there 15 or 20 years, I bet you that asset will go up enough to where you would be able to do a reverse mortgage and have your mortgage benefit you and pay you some money.
Continue on to the next couple of videos where I explain “where to start and what to expect”, “Tax Benefits and Mortgage 101 – Important Mortgage terms.
If you or someone you know is ready to step into the benefits of home owner ship or have any more questions be sure to call us at 909-920-3500.
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