Many first time home buyers are pleasantly surprised at the financial advantages of owning their own homes. Often the cost of owning your home is actually lower than the cost of renting.

In most cases, all of your mortgage interest is tax deductible. This can make a significant increase in your take-home pay. The mortgage interest deduction is the oldest income tax deduction in the United States. But, remember that tax laws are constantly changing, so be sure to check with your tax professional for details. Michael Cornell can refer you to a financial advisor and a tax professional.

If you are renting now, you can probably expect your rent to increase virtually every year, FOREVER. In most cases, your monthly home loan payment will stay basically the same for a number of years, and then it will disappear, because you have paid it off. You never pay off rent.

Of course, there are expenses and responsibilites associated with owning a home that you don't have when you rent. As an owner of real estate, you will be responsible for annual property taxes. Property taxes can be substantial, so ask what the taxes are on the home that interests you. In most cases, you can have your annual property taxes collected with your monthly mortgage payment so you don't have that big bill all at once. Also, the property taxes you pay on your home may be deductible on your federal income tax return (check with your CPA or tax professional. Remember that property taxes in Washington are can change often and generally increase over time).

Homes need maintenance. When you own your home, you are responsible for your own maintenance; you don't call the landlord when a faucet leaks or the toilet is clogged. Of course, many landlords fail to properly maintain their rental property or fix problems quickly, so taking this into your own hands may be an advantage for you. Many homeowners like the control they have over their own home's maintenance and improvements. While maintenance and repairs are not generally tax-deductible on your primary residence, improvements and upgrades you make can be a deduction later, when you sell the property. Again, check with your tax professional for details.

When you move out of your rental, you may get your deposit back, but that's about it. If you made improvements, those improvements become property of the landlord. When you need to move out of a home you own, you may sell your home or rent it out to tenants.

Visit for information on deals, incentives and rebates and how the government may help you pay for home improvements that save energy and water.

Improvements you've made are YOUR assets.

Usually homes appreciate in value, so you will probably make a profit simply by living in your home and making the mortgage payments on time. Sometimes this profit can be substantial. In booming economic times, it is not unusual for a home to double in value in just a few years. Some people use these value increases to help them move up to a larger or more expensive home. Some just use it as a way to help them retire in financial comfort, or to make other investments.

"I have clients who made a substantial profit on their homes in just six months, but it is important to remember that this is not a typical result. Unless you really know what you're doing, flipping is for pancakes and NOT for houses," >>>>>Michael Cornell

In some cases, such times of extreme economic downturn, the value of your home can decrease. While this is extremely rare in Seattle, it has happened at least three time in the past 100 years. Usually, if you keep your home past the end of the economic downturn, you will recoup your losses and then some. Michael Cornell suggests that you plan on keeping your home at least four years. If you don't expect to keep the home four years or more, it might be better for you to rent. If you buy a home and then need to move too soon to have made a profit, you might rent the property out until your equity has increased more. Many successful long-term real estate investors never sell; they only buy and keep because rents nearly always increase over time.

"2013 gives us an extremely rare confluence of financial factors that make this one of the best times in history to buy a home or investment property. Interest rates are rediculously low, prices are at the end of a major down cycle and economists are telling us to expect a housing shortage in our area within three years.

Buying now, before the interest rate and price increases get going, may be the best thing you could ever do for your financial future," >>>>>Michael Cornell

Michael Cornell can provide you with a "Buy vs. Rent" comparison worksheet, that demonstrates approximately the financial differences between renting and buying your home.

See Also:

What is the best way to be aware of what's on the market?

Some tips on saving energy, water and MONEY around the house