You have always dreamed of owning a home. You’re doing well in your career and are thinking about homeownership as the next step to becoming an accomplished adult.
You may be looking into some of the best places to live in and have come across Portland, Oregon. You might be wondering, ‘Is buying a home in Portland, Oregon a good investment?’
Buying a house in Portland, Oregon is a good investment for several reasons:
1. You can leverage your home equity to be used in other future investments
2. The Portland real estate market is growing — the value of your home will increase in value over time.
3. It makes you eligible for tax deductions.
4. You’ll feel more secure when you own a home compared to when you’re renting one.
5. Portland, Oregon is a nice place to live in.
6. It builds your net worth.
In this article, you will discover in greater detail why buying a house in Portland, Oregon is one of the best investments you’ll ever make.
If you are in the market to buy your first home in Portland, Oregon but you are not sure if you’re making the right decision, there’s a wealth of reasons and new data that can help you make up your mind. From the quality of life to equity, here are the reasons why buying a home, in Portland is good for you:
· You can leverage your home equity to be used in other future investments
A recent report by the Oregon Office of Economic Analysis has revealed that home equity is the biggest source of wealth here in the U.S. That means that until you get to the highest income brackets, you just don’t see Americans making any other huge investments.
If you keep at least a third of your assets in your principal home, you can find greater financial stability and the ability to move your funds around when certain emergency needs come up in the future.
While you have the option of putting your home equity right back into your home through remodeling projects, you also have the option to use your equity to invest in something else, like a business.
· The Portland real estate market continues to grow
Those who don’t believe in the value of homeownership often say that investing in real estate only makes sense if the value of the property increases over time. That is true, and that’s what you get when you invest in a home in Portland.
Although there are no guarantees that home values in Portland will increase in the short term, they definitely and significantly will in the long term. Statistics show that the Portland real estate market will continue to grow in the long run, making it a wise option for those who are planning to buy a home in Oregon.
Take a look at these figures:
The population of Portland is seen to increase by 42 percent over the next two decades, making the seven-county Portland-Vancouver-Hillsboro Metropolitan Statistical Area’s population at least 3.5 million.
The region has managed to grow its economy over the past decades, which means residents here are working and earning well. Because of this, those who do not have their own homes yet will have their own soon.
Since a deficit in single-family homes is seen over the next two decades, at least 1,300 additional homes will be needed to close the gap. This will translate to more demand for existing homes.
· Buying a home makes you eligible for tax deductions
Since major players in Washington who lobby for housing policy like the National Association of Realtors, the National Association of Homebuilders, and the Mortgage Bankers Association generally bat for homeowners and not renters, there are several tax-related laws that work to the advantage of homeowners.
For one, homeowners are entitled to mortgage interest deduction for the tax years 2018-2025, which means they can deduct the interest on up to $750,000 of the mortgage debt they incurred to buy their home. They can also deduct up to $10,000 of their state and local property tax from their federal tax and deduct remodeling costs from their net profit so they pay less in taxes.
If you buy a home in Portland, Oregon now, you don’t only get to enjoy these benefits but also benefits from other federal housing subsidies available to homeowners, including reduced rates on insurance.
· You’ll feel more secure when you own a home compared to when you’re renting one.
From 2014-2017, the average rent in Portland went up nearly 20 percent. That’s like throwing away your money for something that isn’t and won’t be yours! Also, imagine the risk of being homeless if your landlord decides he doesn’t want to rent out his property anymore. Where will you go?
If you’re hesitant to buy a home because you don’t want to borrow most of the value of the property, the good news is that mortgage payments can be fixed over the term of your loan. You also have the option of refinancing later if for some reason things change and you can no longer afford to pay back your loan on a monthly basis.
Even so, that doesn’t change the fact that unlike renting a home, buying a home lets you stay in the home and make improvements on it as long as you want.
· It builds your net worth
A typical homeowner in Portland, Oregon has a net worth of $230,000, while a typical renter has around $5,000, according to the Federal Reserve. This is because homes in Portland have been gaining between 7-10% in value annually for the past few years. Generally, homeowners in the U.S. expect a 3% gain in their home values every year, so a gain of 7-10% is definitely a good deal if you’re planning to buy a home in Portland.
Unless boosting your net worth over your lifetime is not your priority, renting a home for a long time doesn’t make sense if you can actually afford to buy a home today, especially in a market as strong and as promising as the Portland real estate market.
If you are still hesitant to buy a home in Portland, find a real estate agent you can trust. Working with a real estate agent will help you a lot in ensuring that all the aspects of your home purchase are under control. Your agent will also guide you throughout the home buying process and ensure that you make wise decisions along the way.
If you are buying a home in Portland and are looking for an agent you can trust, call me, Anne Stewart, at 503-804-1466 today.