“Gaining Financial Benefits Despite High Prices: Is Buying a House Still Worth It?
With the market prices of houses skyrocketing, coupled with ever increasing interest rates, one may wonder if buying a house is still financially beneficial. However, even at these high prices, the advantages of owning a home as opposed to renting one remain valid.
To begin with, a homeowner earns equity on their property, which builds over time as the homeowner pays off the loan with the fixed monthly payments. These accrued gains may give the homeowner the opportunity to leverage them in the form of a second mortgage for an investment.
Also, buying gives you the opportunity to enjoy government tax deductions. By itemizing your property taxes and paying mortgage points, you can significantly reduce the amount you owe. Moreover, many states exempt the whole amount of capital gain taxes when selling a primary residence.
Another financial benefit of owning property is the consistent and steady growth in the value of the asset. It is due to the power of compounding as the home owner is paying the same amount each month while the market prices of the property steadily rise.
Finally, buying a home comes with many intangible monetary benefits. For instance, you get to enjoy freedom from the constant need to move to adhere to the contract or to pay hefty rent increases. Also, there is a fearlessness that uncharacteristically comes from knowing you live in your own pad, not affected by rent payments that can sometimes go as high as what a mortgage would have incurred.
On the whole, although the market prices and interest rates are high, the financial benefits of buying a house still remain valid. From building equity to tax savings, and from gaining a consistent source of stable income to freedom from rent payments, buying a house is still an important investment.
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