The State of Bend Oregon Real Estate
Despite recent turns in the housing market, it is still smart to buy your home as soon as possible.
Equity appreciation is one of the best ways to realize short and long term financial gains. On average, appreciation is at 6% a year, a consistent, if not conservative rate, especially if it is a primary residence. Bend has seen much higher appreciation over the last several years. However, for planning purposes you should stay with 6%.
Equity in a home is an important ongoing financial resource, used wisely. As a mortgage gets paid down and the value appreciates, the equity (monetary value beyond what is owed on the property) can become available in the form of an equity loan or a line of credit. The interest on these loans offers the added financial benefit of being fully tax deductible. One smart way to use these loans is to pay off debts that have higher interest rates and are not tax deductible.
Remember, though, that equity loans and lines of credit must be paid off when the house is sold, so factor that into any profit you may expect to gain. Some of you may think that it’s a scary market right now. But investing in a home is still one of the best ways to build long-term wealth and create short-term tax advantages. (Excerpted from Ownership Advantages, The Bulletin)