You might see some investment gurus touting home buying as a “horrible investment.”
Are they right?
Maybe. If you’re looking at the term “investment” only in the sense of your money actively working to make you more money, then this may be true. Stock investments can make you much more cash. Generally, stocks see a 10% return – compared to the 3-4% seen in real estate.
However, if you’re looking at the term “investment” in a broader sense, the picture of a home as a great investment becomes much clearer.
Buying a Home Builds Equity
One of the main complaints of renters is that they feel they’re “throwing their money away.” They’re paying for a space that they don’t own. They may even have to pay for “damages” when they move out that are simply the wear and tear of a person living a normal life.
Buying a home means that you’ll be paying your own mortgage – not someone else’s. With each payment, you move toward complete ownership of an asset. By the time you’re ready to move out, it’s very likely that the price of your home will have appreciated.
Buying a Home Can Provide Tax Credits
While tax credits aren’t exactly an investment, they do provide more money back in tax deductions than renting can.
Home Ownership Tends to Be a Safe Investment
Owning a home isn’t going to double your bank account like a lucky stock or other investment might. However, it’s a safe investment that does grow over time. For people who aren’t interested in the “risk it all” world of the stock market, homeownership offers a way to build wealth over time while getting to enjoy the home in the meantime.
Building YOUR Home
Of course, there are times when buying doesn’t make sense. Perhaps you’re planning to stay in a state for a year or two. Maybe you’re in a very urban area where commuting from a house outside of the city doesn’t make sense.
Or maybe you just can’t seem to find a home that speaks to you. That’s where PG Builders comes in. We can help you to design your dream home and bring it to life. Call us at (813) 253-0000 or contact us online today to discuss your ideal home.