BUYERS GUIDE
I Wanna Hold Your Hand: First Time
Homebuyers
by Elaine VonCannon
The Empowerment of Owning Your Own Home
Purchasing a home is one of the most powerful and terrifying
events of a person’s life. It is a challenge, but
once this challenge is met with strategic planning, knowledge
and excitement it becomes an investment. One that will
change your financial future and bring more return than
you ever imagined. The first step is finding a real estate
agent with integrity and experience. The perfect agent
will be one who fosters trust, believes in buyer education
and offers emotional support. Over time seasoned buyers
come to view these agents as partners in locating and
analyzing the best investments available.
Don’t Be Afraid of Cold Feet
A first time buyer should expect to feel an initial wave
of buyer’s remorse. There is always a moment of panic
or doubt right after the first offer is made. Don’t
hesitate to ask your real estate agent questions and to
communicate your fears. The agent is there to explain
each step of the transaction and to interpret local and
state laws. Remember that buying a home is a long-term
investment. Most properties increase in value and if the
purchase is planned well you will have more money in the
end. Let the real estate agent know your plans for the
future. Is there a chance you will rent the property later?
Do you plan to live in the house for less than five years
or more than ten? Think clearly and consider all the possibilities.
If you are buying an older home be realistic. Prepare
for repairs and hard work. Expect to make changes and
improvements that will increase the return on your investment.
Building a Foundation For a Better Life
The benefits of ownership can change the financial profitability
and personal outlook of one’s life. The power of
purchasing property creates a refreshed sense of security
and freedom. The tangible pay off of seeing your money
in action creates confidence and pride. Renting takes
only the present moment into account, buying allows
you to invest in your own future. Unlike unpredictable
rental fees, mortgage payments are stable or increase
gradually. A mortgage payment increases your credit
score and opens doors to other investment opportunities.
A successful purchase allows you to personalize your
living space, which gives you the motivation to stay
on top of your investments. Take a look at your neighborhood
and become more inspired, more proactive. Build the
perfect atmosphere and home and look forward to an even
more exciting return on your investment.
Tax Incentives Make Buying The Better Choice
Buying a home allows you to build equity and have huge
tax breaks. Mortgage interest and annual local and state
property taxes are deductible. Since the first few years
of mortgage payments are mainly interest, and therefore
deductible, the savings is amazing. Up to $100, 000
interest on home equity loans can also be deducted.
Loans and interest on loans used to improve a home with
the intention of renting can be deducted, as well as,
mortgage interest on second homes if you rent them.
Capital improvements made to increase the value of a
home can be recorded and reduce the capital gains. To
explore all of the tax advantages of purchasing and
owning a home remember to consult a professional in
your area. The joy and accomplishment of ownership are
waiting for you!
About the Author
Elaine VonCannon is a REALTOR with RE/Max Capital in
Williamsburg, Virginia, and she manages investment property
as part of her business. Elaine is also an Accredited
Buyer's Representative as well as a Senior Real Estate
Specialist. She has helped numerous clients invest in
and make money on property in Southeastern Virginia.
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