Pride in owning ownership, home value appreciation, mortgage interest deductions, and potential property tax deductions are some of the best reasons. Other benefits include the exclusion of capital gains, preferential tax treatment, capital creation through mortgage reduction, and equity loans. Buying a home can be a very good investment. You may be able to accumulate capital.
But, as with any investment, the return on your investment depends on several factors. When it comes to real estate, factors such as location, economy, maintenance, and environmental concerns can affect overall value. And keep in mind that it's never static, so things can change. When you're looking for a new place to live, the first question you ask yourself will help drive the rest of your decision-making.
Should you rent or buy? Buying may seem attractive because you will put an end to rent escalation and you can accumulate capital. But the reality of routine home maintenance and repairs can quickly drain a bank account. Renting a place to live gives you the freedom to move when you want, without any of the responsibilities of owning a home. But at some point, most people long to have their own home.
Buying a home is a good way to start creating financial security. As you pay off your mortgage, your home's equity increases, which is a valuable financial resource.