The Home Investment: Is a Green Home Purchase Profitable?
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It is definitely practical to buy a green home. As time goes on, it will be harder and harder to sell a home that is not energy-efficient. A green home is more durable, healthier, and more sustainable. It is cheaper to operate.
Yes, buy green!! Why buy anything else?
The better question might be, "Is buying a home for you?" This is something any person or couple should answer before buying a home. Your lifestyle and financial situation have a lot to do with your decision to purchase a home. Ask yourself these questions before buying:
1. Are homes in your area a good investment?
Look at the economy of your area. Some areas are better than others and some areas of any metropolitan area are definitely in a decline.
2. Are you planning to
If you expect to move soon, then buying a home will have fewer financial advantages.
Although there are some income tax advantages to home ownership, and certain other financial advantages, it takes a few years to recoup the costs of buying and selling property. The period of time depends upon:
How fast homes in your area are going up in value.
How fast you are lowering your mortgage balance.
3. Is your company
planning a move?
Often, if a company is relocating to another area of the country, some of your selling expenses are paid by the company. If this is your company's policy, you probably feel free to buy.
However, even if your company is considering a move within a metropolitan area, you may choose not to commute. If you get in a hurry to move, you could be forced to sell at a financial loss. This is normally not a problem, though, if you commute for the time it takes to sell your home in one area. You will still have some problems if the homes in the new area are more expensive that the same quality and size home in the area you are leaving.
Some people have ties in the area the company is leaving that they are unwilling to break. If you have these kind of ties (children in school, parents or friends to consider, favorite hobbies or leisure activities nearby, etc.), you are a candidate for ownership regardless of the company's plans.
4. Do you really want
to own a home?
Don't buy because your friends are buying or because your parents/children/co-workers are pressuring you. If you don't have the time, energy, or inclination to take on more responsibility now, renting may be a better choice for you.
5. What if you are
single now and you marry?
Assume your new spouse owns a home and you decide to live in it rather than yours. Or assume that you decide to buy a home that is "ours" rather than "his" or "hers"
What will you do with the home you own? You will sell your home or use it as investment property. Even if playing landlord does not appeal to you on a long-term basis, you can rent the home to others while you sell it.
And what if you don't marry? Certainly no single ever has that guarantee. There is no reason to put your life on hold waiting for marriage.
6. Do you really realize the time and money home maintenance can entail? Although green homes are often more durable and easier to maintain, home ownership does coms with a time-and-money maintenance.
7. Can you afford to
buy a home?
If you are questioning your financial ability to buy, you might want to talk to a financial advisor. He/she can help you decide.
One accountant in Arlington, Texas wrote her own condo does not produce enough income tax savings to be worth itemizing. But she loves living there.
8. Which brings us to the main point of home ownership: pleasure. Financial considerations are usually not the main reason for purchasing a home. Home ownership is a source of great satisfaction to some people. When all is said and done, it is an emotional experience that can not be reduced to dollars and cents.
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