Why Buying a Home is a Good Idea? :
First buying a home is great investment. Indeed as a fairly general rule, homes appreciate about 4 or 5 % a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region. You may think that 5% is not seem that much at first. Stocks (at times) appreciate much more, and you could easily earn over the same return with a very safe investment in treasury bills or bonds. But as you are financing your purchase with a mortgage your rate of return when buying a home is higher than most any other investment you could make. The main reason is that the interest on your mortgage and your property taxes are both tax deductible, the government is in a way subsidizing your home purchase. Tax deduction is the second positive factor which can convince you of buying a home.
Third you will have more or less stable housing cost. When you rent a place to live, you can certainly expect your rent to increase each year or even more often. If you get a fixed rate mortgage when you buy a home, you have the same monthly payment amount for thirty years. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage and interest rates are not so volatile. So just imagine how much your rent might be ten, fifteen, or even thirty years from now?
Fourth advantage is that a house is an automatic savings account. You accumulate savings in two ways. Every month, a portion of your payment goes toward the principal. Second, your home appreciates as we explained already. Over time, history has shown that owning a home is one of the very best financial investments.
Eventually you will a wide range of personal benefits when buying a home. You will certainly gain in space. But mainly, you will be able to get the benefits of any improvements you make, and in addition you get to live in an environment you have created.
