When you buy a home, you may be thinking of your family first and foremost. You need a place to live, and a home gives you the type of stability that you just can’t get with renting. It also gives you a place that really feels like your own.
It’s also a very big financial investment. Many people write this off, knowing they’ll either have to pay rent or pay to buy a house, so it’s no different. But maybe you’re also thinking about what your money is doing for you. Is buying that house a good investment?
Most experts agree that real estate is a sound investment
Clearly, the answer to this question is different for every home. One with a lot of unexpected defects may not be a good investment, which is why it is so important to have an inspection done before you buy.
On the whole, though, the majority of experts note that this is a good investment. A mere 5% claimed it wouldn’t be a good investment in any case, and the remainder acknowledged that it could be if things go well, even if it wasn’t in 100% of cases.
There are numerous reasons for this, starting with the fact that home prices tend to increase as time goes by with population gains, lower housing supply and things of this nature. Additionally, selling a home in the future recoups your payments, whereas rent money is gone once it has been paid.
That said, this is still a major investment that can have serious financial ramifications for the rest of your life. You need to make sure that everything goes smoothly and that you know exactly what steps to take to protect yourself throughout the process of buying your new home.