The Benefits of Owning Your Own Home in Sarasota

The Best Investment You Can Make

    "You are going to love the feeling of a home that’s all yours," according to a respected realtor serving buyers throughout sarasota Florida.  But there’s a much better reason to own a home of your own in Sarasota Florida. It's also about the best investment you can make. As a general rule, homes in the Sarasota real estate market appreciate in value at about five percent a year or more. Recently, it has been considerably more than 5%. Some years the increase will be more; some years less. The appreciation rate will vary from neighborhood to neighborhood. ;But as a rule, you can count on a 5%/year increase in value over the long run.

    At first glance, 5% per year may not seem like much. After all, stocks tend to appreciate more than that. Over the long haul, stocks have averaged an annual appreciation of closer to 7% or 8%. So why buy a home with your money ?

    Normally, when you buy a $200,000 house, you don't pay cash for it. You get a mortgage. Let's assume your down payment is 20%, the maximum you'd be asked for. That would be an investment of $40,000 of your money.  The rest of your home's purchase price is "the bank's money." That's right. You bought a $200,000 asset by committing only $40,000 of your money.

    At an annual appreciation rate of 5%, your $200,000 home will increase in value by $10,000 on average annually. That means you earn $10,000 on an investment of $40,000, according to an experienced one real estate broker.  Your annual "return on investment" is a whopping 25%. (The $10,000 increase in value of your Sarasota real estate investment divided by your investment of $40,000.) Try finding a better investment.  And, your family gets to live in a $200,000 home in warm, sunny and beautiful Sarasota Florida.

    Of course, you're making mortgage payments, paying property taxes, and other maintenance costs. But remember, in most cases you can deduct the interest expense and property taxes on your home against your income taxes. U.S. Government is essentially subsidizing your home purchase. Why ? The government wants you to own your own piece of the pie so it provides an incentive to do so. :iving in a rental home isn't cheap either and all you're collecting then are rent receipts.

    What's this all mean ? It means that the rate of return (or return on investment) on buying a a home in the Sarasota Florida real estate market is higher than almost other investments. Even better than that, you participate in the "American Dream" -- owning a Sarasota Florida home of your own !