Is Buying A House A Good Investment?

Buying a home has been the measurement of financial success for many years. After the financial crisis, people are more cautious approaching buying a house. The thought of spending your life savings on something and then losing it all shortly after can have that effect.

Common arguments In favor of buying are:

  • You’ll be paying your own mortgage, not someone else’s
  • The house will appreciate over time and gain more than they put in after the amount they paid in mortgage, interests, taxes and maintenance costs
  • There are tax benefits of owning a home such as capital gains exclusion and mortgage deductions
  • Long term, buying is cheaper than renting

Common arguments in favor of not buying are:

  • There are lots of costs associated with owning a home, like property taxes and a hefty down payment
  • Don’t have to pay for repairs, maintenance or other problems that may come up
  • Flexible to move whenever you choose to

Both sides have valid arguments whether to buy or not to buy. But the reality is that it is not so black and white when making such a life changing decision. There are many more factors to consider such as rent prices, interest rates,  financial security, how long you plan on staying, and so on.



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