In these uncertain and turbulent times it is still a wonderful investment!
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Not as speculative as investing in the stock, bond and commodity markets.
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A piece of real estate is a real tangible asset that WILL GROW in market value over time. Just maintain the property and keep it in good shape to maximize when you do sell.
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It provides leverage – you purchase the whole investment with a down payment not the entire sales price. (not so with other investments – you must pay 100% of your investment).
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Tax benefits are wonderful! For your 10-20% initial investment you get to depreciate your asset and enjoy the tax-deductibility of your mortgage interest.
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If the property is your primary residence you get to avoid capital gains. Live in your home two years and pay no capital gains up to $250,000 for singles, $500,000 for married couples. Convert your primary after two years to a rental and you can still come out ok by renting it for three!
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Property an investment property? Consult your tax-prepayer on the myriad of write-offs you can take against your rental income.
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A home is a “home”! This is a place you own, not renting from a landlord that has control, you have control! Over where you live, the style of home, what you choose to improve or not improve, the color scheme, the décor! Someplace to watch your family grow and plant roots. So what you don’t have equity today – you will one day, in the mean time you have a “home” where memories grow?
