The Benefits of Buying.

In a day and age where home prices are rising and interest rates are higher than they’ve been in years, it’s easy to wonder, “why would I buy?” Great question. Despite the volatility and confusion in the housing market over the past four years, investing in real estate is still one of the smartest things you can do. While there’s many reasons this is true, a few things to keep in mind when you’re toggling between renting and purchasing are:

There are tax benefits to purchasing property. Both real estate taxes and interest are tax deductible.

By making your mortgage payment every month, you’re building equity. When you are renting, the money is not going towards anything of value that you’ll own in the future, but rather is “throw-away money”. In addition, since most homes will increase in value over time, those who opt to purchase a home are building wealth by investing in a home.

Purchasing a home protects you from market volatility and inflation down the road. When you’re renting and inflation spikes, you’ll feel that spike in your monthly rental rate. However, when you purchase a home, you’re locking in both the purchase price and usually the interest rate as well (excluding adjustable loans, etc.). The only aspects of purchasing a home that could rise due to inflation are property taxes, homeowners insurance, and maintenance costs, but the big hitter - your mortgage payment - is inflation-proof.