How Home Buying in Anchorage Can Boost Your Net Worth
by Dan Wolf
on Tuesday, February 3rd, 2015 at 12:03pm.
With the high cost of rent, it’s hard to argue against the financial advantages of home buying in Anchorage, Alaska. When it comes to using home ownership as a method for boosting your net worth, it’s all about maximizing the tax advantages and rapidly building equity. Owning real estate is a major positive piece of net worth puzzle for most people. During the housing decline, some people had negative equity in their homes. However, there are ways to avoid that situation when home buying. By working with a good lender and Anchorage Realtor, you can avoid spending more than you can afford on a home. According to an article by The Motley Fool, many people are clueless about their net worth. To calculate your net worth, you just take everything you own and subtract all your debt. A Realtor can help you figure out the market value of your home. If you decide to sell your home, it can turn your real estate asset into liquid cash.
• Build equity as fast as possible
When home buying, there are a lot of different mortgages available. Choosing a shorter loan term such a 15-year mortgage will help you build equity in less time. Also, any money you put down on a home will serve as equity. Your Realtor will guide you in choosing a home that is more likely to increase in value, which also boosts your net worth.
• Itemize your deductions on taxes
When you itemize your taxes instead of taking the standard deduction, you can maximize the tax benefits of home ownership. People who own real estate investments such as rental properties receive even greater tax benefits because they can deduct the cost of maintenance and property management.
• Compare yourself to others
When you compare your net worth to the net worth of your peers, it’s not a competition as much as it’s a way to gauge your progress. By paying off your home by the time you retire, you will lower your expenses while having a major asset at your disposal. According to The Motley Fool, people who have a net worth of $344,879 by age 65 are doing better than 70 percent of people who are 65 or older. For people who are age 35 to 44, a net worth of $128,430 is in the 70th percentile. In addition to the equity in your home, other assets that count toward your net worth number include money in savings, checking, retirement accounts and assets such as art and jewelry.
With the values of homes going up in Anchorage, Alaska, it’s simply to become wealthier over time. At Wolf Real Estate, our goal is to help you find a home that appreciates in value as well as one where you are happy to raise a family or retire. For more information about home buying in Anchorage Alaska and increasing your net worth, please contact us at 248-9653 or visit us online at www.anchoragehomesearch.com.