As real estate agents, we are often in a position to educate our clients on why buying a home or property is a smart investment.
Whether to buy or sell depends on each individual client’s goals. You also might encounter clients who are on the fence about buying. One client may have reservations about buying his or her first home and another may be looking to change residences after a major life event such as a divorce.
In any case, it’s a good idea to remind your client of the tried-and-true reasons purchasing a home is a wise choice.
Here are four timeless reasons purchasing a home makes dollars and sense:
Generational wealth
Real estate is a great asset long term. Historically, as Inman reported in January from ICNY, renters have paid a quarter of their income in rent, but that number is now up to 29 percent nationwide and even higher in cities such as LA, Miami and New York.
Renting is simply more expensive with no tangible payoff. Homeownership helps to build generational wealth because it appreciates, and owners accumulate equity at the same time as paying off the loan.
So, if a client purchases a home now, they’ve placed their capital in a safe investment that is likely to grow, creating a valuable sense of security for families.
Income generation
Real estate is a tangible asset (bricks and mortar we can see, touch and make memories in with our loved ones) that can always be used by the owner personally or to rent out to tenants.
Although being a landlord comes with a whole other set of factors to consider, having a property generate income for as a rental property can be a very wise decision.
Tax benefits
It’s also important to remind clients of the critical tax benefits that come with being a property owner.
For example, being able to write off interest rates on taxable income may very well add up to smart savings. Also, as owners of investment properties, any contractor work performed, repair, maintenance and any operating expenses will be tax deductible items.
Forced savings
Sometimes perspective is key. Remind clients that a portion of their payment each month goes to the principal of their loan, which really can be viewed as a savings plan as they build equity in their home.
When retirement day arrives, home equity will be key for many individuals.
All four reasons aside, there is another silver lining to home purchasing: animal lovers out there can breathe a sigh of relief when purchasing a home, as they won’t have to worry about landlords who don’t allow pets anymore.
The key to overcoming objections is in understanding them. Get to know your potential homebuyers well, and find out their motivations. Having a deep discussion about goals and fears can often seal the deal.
Nick Roshdieh is a Realtor with HOM Group in Laguna Beach, California. Follow him on Instagram or Facebook.
