5 Top Reasons Why Buying a Home is Sound Investment
- By Stewart Wrighter
- Published 12/16/2011
- Real Estate
- Unrated
There is such a lot of talk about recession and what could be the best possible investment that would survive an economic meltdown. No matter how you look at it, investing in luxury real estate and luxury homes looks the most promising. Here are the top 5 reasons why such investment is the best you could ever make:
1. Huge appreciation – real estate is one of few investments today that appreciates by leaps and bounds. In some cases, the price of houses would double in just 3-5 years given the best economic conditions. Could you tell the same about any other investment? Even when the markets are down, you would always have only to gain from your real estate investment.
2. Saving on taxes – the federal tax law allows for deduction of real estate and mortgage interest taxes. In case you choose to sell your home you would also get tax break on capital gains. This means that buying a house would be less expensive for you than renting a home.
3. Your choice of style and neighborhood – buying a house means you can have a home wherever you want and however you want it. There are huge limitations on this aspect when it comes to renting a home. Often you may not find a home in the neighborhood of your choice. Another considerable drawback would be that you would have to adjust to the imperfections the rented home has for
you would not permitted to make any modifications to it.
4. You cannot lose with this type of investment – while it is true that sometimes – as during recession – prices dip, there is always a bounce back that more than makes up for the low period. All you have is wait it out. Long-term house owners have even beaten the inflation.
5. You are guaranteed a safety nest – once you buy a home, you have to continue paying the mortgage, which in turn would grow into a very comfortable safety nest through home equity. Without the mortgage, it is most likely that you would have never thought of putting aside an amount equivalent to that of your mortgage installments.
6. You will be the owner of your home – when you are renting a place you are paying rent; when you own a home you are paying mortgage. You are paying money in both instances. The difference between these renting and buying is that with buying at the end of the deal you are the owner of the house; with renting the money paid is lost.
7. You build a house to suit your needs – it is very rare that renting would give you what you want in terms of space and style. When you buy your own house, you could always modify it to suit your needs to the T. You could have adequate number of rooms, comfortable bathrooms, large kitchen space, play areas for children, and the like. Such freedom of choice would give immense satisfaction and peace of mind.
1. Huge appreciation – real estate is one of few investments today that appreciates by leaps and bounds. In some cases, the price of houses would double in just 3-5 years given the best economic conditions. Could you tell the same about any other investment? Even when the markets are down, you would always have only to gain from your real estate investment.
2. Saving on taxes – the federal tax law allows for deduction of real estate and mortgage interest taxes. In case you choose to sell your home you would also get tax break on capital gains. This means that buying a house would be less expensive for you than renting a home.
3. Your choice of style and neighborhood – buying a house means you can have a home wherever you want and however you want it. There are huge limitations on this aspect when it comes to renting a home. Often you may not find a home in the neighborhood of your choice. Another considerable drawback would be that you would have to adjust to the imperfections the rented home has for
4. You cannot lose with this type of investment – while it is true that sometimes – as during recession – prices dip, there is always a bounce back that more than makes up for the low period. All you have is wait it out. Long-term house owners have even beaten the inflation.
5. You are guaranteed a safety nest – once you buy a home, you have to continue paying the mortgage, which in turn would grow into a very comfortable safety nest through home equity. Without the mortgage, it is most likely that you would have never thought of putting aside an amount equivalent to that of your mortgage installments.
6. You will be the owner of your home – when you are renting a place you are paying rent; when you own a home you are paying mortgage. You are paying money in both instances. The difference between these renting and buying is that with buying at the end of the deal you are the owner of the house; with renting the money paid is lost.
7. You build a house to suit your needs – it is very rare that renting would give you what you want in terms of space and style. When you buy your own house, you could always modify it to suit your needs to the T. You could have adequate number of rooms, comfortable bathrooms, large kitchen space, play areas for children, and the like. Such freedom of choice would give immense satisfaction and peace of mind.
Stewart Wrighter
Stewart Wrighter has been researching an article about agents who sell luxury real estate and how this economic environment has affected their income. He and his wife were pleased to a large selection ofluxury homes available in their favorite neighborhood.
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