. “Why Investing in a Home is Still Financially Wise – Despite High Prices & Rates!

Home ownership is a timeless pillar of the American Dream, and for good reason. Despite sky-high prices and interest rates, buying a house can still be a financially beneficial decision—especially if you make sure you’re armed with the right information and a savvy approach. To start, it’s important to understand why buying a house is such a great financial decision. It’s likely that your home is your largest long-term investment, meaning it has the potential to appreciate over time and provide an excellent return on your initial investment. Additionally, continued monthly payments, as long as they are on-time, are also likely to boost your credit score. Furthermore, when you own your own home, there are few tax benefits that could potentially offer relief—while making mortgage payments, you could deduct interest, points, and property taxes, potentially reducing your total payable taxes at the end of the year. Additionally, if handled strategically, the profits from selling a primary residence are not considered taxable gain—as long as you use the proceeds to purchase another principal residence with altered terms. It’s also important to keep in mind that the sky-high prices mentioned may be more flavored perception than the actual reality. In 2020, the median home price was $340,000—a figure that’s still substantially lower than it was pre-housing bubble. Additionally, interest rates are still at an all-time record low and projected to stay that way for the remainder of the year. On the flip side, one of the most understated “underbelly” benefits of owning a home is the sense of security and stability you gain by having a dependable and reliable place to call your own. Further, owning a home can allow you to enjoy the expansive and customizable benefits of cultivating your own personal space, lawn, and garden. Ultimately, while it’s understandable to feel overwhelmed by the eyebrows-raised prices ubiquitous near large city centers, buying a house is still a solid financial decision—but it’s important that you understand why, and create a strategy around any decision you make. As long as you’re mindful of the right information and requirements, buying a house will likely be a solid investment.