Why Buying a Home Makes Financial Sense

Buying a home is a great financial move.

For one reason or another many of us put off purchasing a home, but buying a home may make more financial sense than you think. It’s a great investment that you’ll have for years to come. Here’s why you should consider buying a home.

You have to pay either way.

Whether you’re renting a home or buying a home, you’re going to have to pay a monthly fee. Why not apply your monthly payments to home ownership? Rather than paying a landlord, you put money toward your own principal.

Leveraging your investment.

Buying a home is a wise investment. Unlike other forms of investments, buying a home is an easy way to get leverage. As the value of your home increases over time, the leverage factor of the home also increases which eventually gives a return on your home equity.

Saving incentive.

Far too many of us have mastered the art of procrastination. When it comes to saving, many of us fall short. Buying a new home, forces us to start saving. In order to afford a home, you have to keep up with your monthly payments, which provides an extra incentive to start and keep saving.

Inflation protection.

While inflation depreciates your purchasing power, your home stays safe. Historically, the rate of home appreciation has paralleled or even surpassed inflation rates.

Get a tax break.

Owning a home helps you get a break when it comes to your taxes. When it comes to mortgage interest and property taxes, homeownership gives you a break. You can deduct them from your taxes making your investment a smart choice.

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