- Market Appreciation: Real Estate appreciates over time (better than Wall Street)
- Tax Advantage: You can write off closing costs and mortgage interest associated with your home purchase on your taxes. Check with your tax advisor.
- Forced Savings/Wealth Building: Your monthly mortgage payment goes toward both interest and the principal balance on your purchase every month. Over time, monthly payments provide significant equity and savings.
- You Can’t Out-Save Inflation: In most cases, it is better to purchase a home before saving a down payment. Saving a down payment takes time and at the current growth rate of inflation (3% CPI), prices will rise more quickly than most people can save money. It is better to utilize loan products to get into a home without a down payment to start taking advantage of the benefits above as quickly and stop paying rent.
- Less Competition: With less competition, it is much easier to get concessions from sellers including price reductions, seller-paid closing costs, and selected repairs.
