Why Buy A Home?

You can usually buy a home for the same price or less than what you could rent a home. The interest payed on the loan is tax deductible. And you are building equity into something that historically has a 3-5% per year appreciation. What other investment can bring you that rate of return for as little as 3.5% down? On a $100,000 home, the minimum you have to put down is $3,500. Assuming a modest 2% appreciation per year, you will have your original $3,500 payed back to you in appreciation in less than 2 years. Housing is a less risky investment than the stockmarket, just look at how many people just lost ½ their investment within a 6 month period.

Also, there is something to be said about the feeling you have when you can say “This is my house!” Ownership is a special feeling that you do not have while you are renting or living with friends or relatives. Having privacy and a feeling that you are accomplishing something is a great thing to have.