HARVARD'S 5 FINANCIAL REASONS TO BUY A NEW HOME
Recently the housing market experts at Keeping Current Matters shared Harvard University's Top 5 Reasons to purchase a new home:
1.) Housing is typically the one leveraged investment available. Homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. 2.) You're paying for housing whether you own or rent. Either you’re paying down your own principal or you’re paying down your landlord’s principal. 3.) Owning is usually a form of “forced savings”. “Forced savings” refers to the tendency of homeowners to consciously save money each month for the payment of their mortgage. 4.) There are substantial tax benefits to owning. “Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.” 5.) Owning is a hedge against inflation. “Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition."