There are many good reasons to buy a home and most people consider home ownership to be a good financial investment. But before buying, you need to be aware of some common home ownership myths so that you can make an informed decision. Home ownership is not always a good investment as home price increases historically have far underperformed the stock market. Also, paying your mortgage is not much different than paying the landlord in the early years as you are paying mostly interest and not building equity. And if home prices fall, you lose equity. Finally, with the new tax law changes, there may be little tax benefit to home ownership for most individuals. All of these factors should be considered before making a home purchase decision.
- Will the equity in your home rise or fall during your ownership of it? Can one sustain the costs that are inherent in ownership?
- Might one make more money investing in the stock market rather than purchasing a house as the market historically tends to do well over time?
- Are tax breaks for individual home ownership really worth it anymore? Do changes in the tax law help or hurt the average consumer?
“You’ll gain more — but not complete — control over your monthly housing payments.”
Now that you've read this are you interested in talking to a mortgage adviser? Fill out the quick form below and you'll be contacted soon by an independent, regulated mortgage specialist for a free no obligation quote.
and £15,000 on your Mortgage
Get a custom rate and see how much you will save
by filling out the quick form below.