Benefits of Homeownership

There are many benefits to homeownership Here are the top five:

1. Savings: Owning a home is like investing in an automatic savings account. You accumulate savings in two ways. Every month, a portion of your monthly mortgage payment goes to the principal, reducing the overall loan amount. Each year, a percentage of your mortgage payment goes to paying down the principal. Second, your home appreciates over time, making it one of the best financial investments and increasing your household wealth.

2. Tax Breaks: Owning a home can unlock some of the biggest potential tax breaks most people have access to. The interest paid on a home loan is typically the largest potential deduction for middle-class Americans.

3. Equity: Buying a home is the largest investment most families will ever make and homeownership is the largest creator of wealth for Americans. It allows families to build financial security as the equity in their home increases. On a national level, home appreciation has historically risen 5-6 percent annually. When you pay a landlord, its money down the drain. When you pay a mortgage, your money is going towards something you own and is over time producing equity.

4. Price Stability: Las Vegas is a city where rent-controlled apartments do not exist. What this means is that each lease renewal could mean an increase in your rent. Owning a home provides price stability. While a rent payment can change substantially from year-to-year, you will have the same monthly payment for 30 years under a fixed-rate mortgage. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage.

5. Security: When you own, it’s yours. And it remains yours for a lifetime if you choose. You also live in a neighborhood with other homeowners, meaning more time to build relationships and friendships. Recent studies have also shown that homeowners rank themselves as healthier than their renter counterparts.

The Las Vegas Housing Market is hot right now! It’s a great time to buy. Don’t hesitate and start building equity today!

Another Great Month for Owning a New Home

As a local homebuilder, our greatest accomplishment is seeing the joy that owning a new American West home brings to the families who have chosen us to be the builder of their new home. Our dedicated team started the new year off with a bang. We had 62 families move into a new American West home in January and sold a home to 75 other families.

Our Buying A New Home in 2013 blog post lists some of the reasons why 2013 is a great year for homeownership. With our variety of homes and communities, there is sure to be a fit for everyone.

If you have not had a chance to do so yet, check out our page on Facebook and make sure to Like us.

We look forward to making the dream of a new home come true for many more families in the upcoming year.

February 7th, 2013 Miscellaneous Tags: , , 0 Comment

Buying A New Home in 2013

Happy 2013! It’s a new year and the start to make the dream of homeownership come true for you or possibly someone you know.

With new home designs ranging from 1,608 to 4,770 square feet, there is a variety of American West homes to fit everyone’s needs.

2013 is going to be a great year to be a homeowner. Some reasons why you should buy now:

Mortgage rates are still crazy low… Low mortgage rates can be like rainbows – they’re pretty incredible but when they’re gone, they’re gone. A few years ago, 30-year fixed rates were above 6.00%. For December 2012, they averaged 3.35%. Interest rates have a huge impact on your mortgage payment. When the low interest rates disappear, they probably won’t be coming back for a long, long time (if ever).

Protection against rental increases… Rents have a tendency to increase each year or two to accommodate for inflation. Owning a home and having a fixed-rate mortgage means you’ll have the same mortgage payment each month for the life of your loan.

Home prices are low – FOR NOW… Home prices are on the rise and by waiting you will miss out on these incredible prices.

Save on taxes… There are a lot of great tax benefits to being a homeowner.

Build equity… Homeownership is still one of the most sound investments you can make. The difference between renting and owning a home is that homeownership lets you build your own monetary value, instead of your landlord’s.

Contact us today and let us help make 2013 your year to own the home of your dreams. For more information on American West’s communities and new homes, visit our website www.AmericanWesthomes.com or call (702) 308-1111.

Watch a video of a sampling of the homes built by American West…

Homeownership Facts

Some interesting information in regards to homeownership:

  • There are outstanding opportunities to buy a new home. Interest rates are still low, prices are right and we have a large selection of new home designs to choose from.
  • Today’s new homes are safer and more energy-efficient than ever before. Save money on energy costs and enjoy more modern lifestyle features such as open floor plans, home offices and outdoor living spaces. Visit any of our communities to find out more about American West’s eHome.
  • As a long term investment, homeownership is still one of the best investments for individual households. Over years of ownership, home appreciation builds financial security for a family’s future. While home values can fluctuate with economic conditions, they have historically increased over the long term. Homeownership is the single largest source of net worth for most families.
  • Over the long term, homeownership is still a solid stepping stone to a future of financial security for your family. Housing markets, like all markets, inevitably have their ups and downs. Homeownership has a track record that is virtually unmatched by any other purchase in terms of its real benefits.
  • The financial benefits of homeownership begin in the first year for most home owners, through the ability to deduct mortgage interest and property taxes paid off their taxable income.
  • Over the long term real estate has consistently appreciated, even through periodic adjustments in local markets in response to economic conditions. On a national level, home appreciation has historically increased 5-6 percent annually, report economics at The National Association of Home Builders.
  • Owning a home provides important emotional benefits to a family. First and foremost, a home is where your family can relax, spend quality time together and build lifelong memories.
  • Owning a home is among the values that Americans most cherish – an important part of the American Dream. Families continue to seek to achieve the American Dream of homeownership.
  • You can’t beat today’s incredibly low interest rates. When interest rates go up, the effect on monthly payments can be dramatic.

We look forward to making your dream of new home come true. Visit our website at www.AmericanWesthomes.com  and explore our 8 communities located throughout Las Vegas. For more information, call (702) 308-1111.

The Tax Benefits of Homeownership

Research from NAHB economists shows that buying a home offers numerous tax savings that can add up to tens of thousands of dollars over several years. The study, entitled The Tax Benefits of Homeownership, shows that the three most important sources of tax savings for home owners are: 

  • Deductions for mortgage interest
  • Deductions for real estate taxes
  • The capital gains exclusion for the sale of a principal residence 

Home owners who itemize their taxes can deduct 100 percent of their mortgage interest payments on a first or second home for up to $1 million of mortgage debt and $100,000 of home equity loans. For most home owners, this means they can deduct ALL of their mortgage interest on their home. This particularly makes the cost of owning a home much more affordable for first-time home buyers and those who have been in their home for just a few years, since the bulk of their monthly house payments go toward interest, which is fully deductible. Additionally, 100 percent of property taxes are also tax deductible. Together, these provisions in the tax law add up to major savings. 

Furthermore, when the home is sold, the capital gain exclusion can again provide home owners a significant tax benefit. Under present law, married couples who have owned and occupied their principal residence over two of the past five years do not have to pay any taxes on the first $500,000 in profits from the sale of their home. Singles earn up to $250,000 tax free. 

Using several examples based on income and the cost of a home, the study shows that couples who itemize their mortgage interest and real estate tax deductions typically reap several thousand dollars of tax savings in the first five years of homeownership. Adding in the capital gain exclusion for the sale of a principal residence, a couple who sells their home at the end of 12 years (an average time of homeownership) can expect to garner tens of thousands of dollars in total tax savings for the entire period that they owned their home. 

SaveMyMortgageInterestDeduction.com

Brought to you by The National Association of Home Builders

Is Buying a New Home in Today’s Economy a Good Idea?

As a long term investment, homeownership is still one of the best investments for individual households. What buyers need to realize is that housing markets, like all markets, inevitably have their ups and downs. Homeownership has a track record that is virtually unmatched by any other purchase in terms of its real benefits for both home owners and their communities. Dollar for dollar, homeownership is a solid stepping stone to a future of financial security and the single largest creator or wealth for many Americans. On a national level, home appreciation has historically increased 5-6 percent annually, report economists at The National Association of Home Builders. Furthermore, the tax benefits of homeownership make housing an important source of wealth for middle-income Americans. The financial benefits of homeownership begin in the first year for most home owners through the ability to deduct mortgage interest and property taxes paid off their taxable income. 

In addition, a home is where your family can relax, spend quality time together and build lifelong memories. 

There are outstanding opportunities to buy a new home. Interest rates are still low, prices are right and we have a large selection of homes to choose from. 

Don’t miss out on the benefits of homeownership.

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