Bend Oregon Real Estate – Your Start to Wealth Building

Real Estate Wealth Building

Bend Oregon Real Estate

 

By Jason Boone

 

At one point many people decide to invest in Bend Oregon Real Estate since they need to buy homes for their families but what they don’t realize is the important fact that home ownership is also the start to wealth building.

 

What a Mortgage Really Does For You

 

Did you know that a mortgage actually functions as a “forced” savings plan where your deposits will continue growing over time?

 

This is especially true the longer you own a home since you will build equity in your home over time.

 

Down the road you will be able to use that equity in your home to invest in more Bend Oregon Real Estate or other wealth building products which will benefit your retirement.

 

Better Appreciation than Other Investments

 

The longer you own a home in Bend, the more you will benefit from appreciation over time.

 

A recent study done by Harvard showed that home owners who owned their own homes between 1975 and 2012 realized an adjusted gain of at least 30% over the span of 30 years.

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Protection From inflation

 

What’s also great about owning a home is you will also enjoy further protection against inflation by locking in your payment during the period of time you own your own home.

 

The longer you own your own home, the better, since with inflation your “real payment” will decline as inflation causes rents for Bend Oregon Real Estate to increase in the years to come.

 

Many Tax Benefits with Bend Oregon Real Estate 

 

Last of all, but most important, owning a home does come with the advantage of tax benefits.

 

For example: If you buy Bend Oregon Real Estate you may be able to take advantage of the well-known mortgage interest rate deduction which will enable you to deduct your annual interest which you’ve paid into your property every year and property taxes up to $500,000.


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To learn more about the benefits of home ownership or to view homes for sale across Bend Oregon contact me, Jason Boone, Principal Broker with Principal Broker at Duke Warner Realty | Skjersaa Group by calling me at (541) 383-1426 or click here to contact me through my website.

Freddie Mac and Fannie Mae News

jason boone bend oregon realtor

 

This summer when the Federal Government announced that they were no longer going to buy mortgage backed securities that shot up mortgage interest rates and sent the Real Estate market into a temporary state of shock until the Fed backed off on their plans.

Last week the Federal Government announced that Freddie Mac and Fannie Mae loan limits are not going to be reduced for at least another six months and that any reduction that the Fed makes in loan limits won’t occur until they announce it at least six months in advance, so the Real Estate and financial markets will have at least six months to prepare.

Badly Needed

Everyone knows that the only real way the Bend Oregon Real Estate, and Nationwide Real Estate can truly recover is if the Federal Government begins to wean itself from involvement with Fannie Mae and Freddie Mac, but the Federal Housing Finance Agency (FHFA) also knows that it’s not something that cannot be done overnight, especially if the Government wants to avoid any economic disruption like the disruption that occurred this summer.

Proceeding with Caution

Edward DeMarco, the Acting Director of the Federal Housing Finance Agency said “While it will get more time to prepare for any changes, a decision on whether to lower the limits, and by how much, would still be made in late November”.

As of October 2013 Fannie Mae and Freddie Mac can’t back loans greater than $417,000 across the United States although in some markets they can back loans as high as $625,500, especially in wealthier parts of the United States like: Hawaii, California, New York and Washington DC.

Mixed Reaction

Since mid-2008 when the mortgage caps were raised, to keep our mortgage market going across the United States, more people were able to own a piece of the Bend Oregon Real Estate Market and a larger number of Americans than in the last 40 years have been able to buy homes because, mortgage interest rates and home values have been so affordable but once the caps are lowered many investors and economists in the USA are concerned that some homebuyers will be pushed out of the Real Estate market since rising mortgage costs might make it unaffordable for many home buyers to buy homes.

What are your thoughts on this news? Feel free to leave me a comment below.

For more information on what to expect in the Bend Oregon Real Estate market in the next 12 months or to view the latest Bend Oregon homes for sale, contact me today by calling (541) 383-1426.

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