Murrieta Real Estate Murrieta Real Estate and the Home Owner Advantage. Back to Communities - Murrieta Homes

Home Ownership Advantages

Murrieta Real Estate as a Investment:

The long term benefits of home ownership shows that owning your own home is a sound investment. Owning real estate allows you to build net worth as the value of your Murrieta home increases. For example, I purchased my Murrieta Home about 6 years ago in 2000, since then my home value has doubled. In general, most California and Murrieta real estate has doubled over the past 6 years. Many new home buyers have found the Murrieta real estate market more affordable than San Diego and Los Angeles counties. In addition, the new homes in Murrieta are usually newer and larger than the typical entry level San Diego or Los Angeles home.

As the value of your new home goes up, you increase your financial options. You become eligible for home equity loans based on the rising market value of your Murrieta real estate. In addition as your net worth grows, you get to enjoy and live in your investment as it grows in value.

Another advantage to owning Murrieta real estate comes through meeting your financial obligations, such as a monthly mortgage payment. This will increase your credit rating and, potentially allow you to make other investments in the future.

Equity

Assuming your home does go up in value, equity will become a major advantage of home ownership. Equity is the difference between a home's current value and the loan balance. For example, if the mortgage balance on your Murrieta real estate is $300,000 and the current market value is $500,000, then the $200,000 difference is the amount of equity in your new home. Remember to think long term, all homes don't go up in value in the short term, but long term statistics have been very favorable towards increasing home values, especially in California.

The equity of your Murrieta Real Estate can increase or decrease, depending on condition of the Murrieta real estate market. Remember that the real estate market is cyclic, it has up's and down's just like the stock market. If you buy when home prices are at an all-time high, there is always the possibility that equity will decrease if the Murrieta real estate market goes down. Otherwise, equity and investment value may go up if the real estate market advances after the purchase of your home.

Tax Advantages:

Another home owner advantage is the tax deduction. The Internal Revenue Service allows homeowners to deduct the mortgage interest you pay on your Murrieta real estate. This reduces the total amount of tax you pay to the government each year. Most of the money paid on your Murrieta real estate loan during the early years is paid to interest not to the principle. These interest payments can be deducted from your total tax bill. For example, on a $2,000 mortgage payment, your interest could be around $1,800. Deducting $1,800 each month reduces your yearly taxable income by about $21,600.

The bottom line is, you either can receive a big tax refund after filing your income tax return, or you can adjust what is withheld from your paycheck each month. In addition to this tax deduction, you can also deduct the Murrieta real estate property taxes from your taxable income. Be sure and speak with a loan professional when calculating these tax benefits as you will want to be sure that your Murrieta real estate investment is an affordable proposition.

If you need any information on Murrieta Real Estate or Property please check our Murrieta Homes section on this website or contact us at any time.