Jul 4, 2010

Why real estate is still a good investment today

A lot of people who bought at the height of the real estate market in 2007 and had to sell in the past year have lost their shirts. Others are still enjoying their homes with no plans to sell any time soon.

A few of the best reasons to still buy a home in 2010 are:
  • Home affordability is the highest it had been since it was first tracked more than 40 years ago. Recent price declines combined with current interest rates let you afford more today. The interest rates are the best we'll see in our lifetime.
  • Lower your tax bill with tax breaks from owning a home. The IRS allows deductions of the interest you pay on your mortgage, your property taxes, often some of the costs to buy your home and sometimes moving costs.
  • Enjoy the independence to do what you want to your home. Unlike a rental property, it's yours to do what you wish. And you have the ability to benefit from any improvements you make.
  • Despite the economic slump, owning a home can help build wealth. Home ownership is still the best long-term investment. You're able to build equity and you decrease your income tax liability.
  • Appreciation potential is strong. As home prices have fallen in the recent economy, the basis for realizing future appreciation is very strong. Historically, even with periods of declining values, home prices have exceeded consumer inflation in the long run.
  • Stability that no other investment can provide. You can't live in a Wall Street stock or raise your children in a bond investment. A home is where you can establish roots and raise a family.
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