What’s the most common mantra you’ve ever heard in the real estate market? “Buying a home is the best investment you’ll ever make.”

But is that true? Well, we say yes. And here’s why:

You can lock in your housing costs.
You’re forced to save.
Home ownership comes with valuable tax benefits.

Over the long haul, houses can help build your wealth. Homes tend to appreciate every year after inflation, so you typically won’t end up losing any money in the long term even with regular housing maintenance and costs. Colorado is actually ranked number 2 in the nation for home price appreciation with an annual rate of 12.66% (September 2015). As it appreciates you are locked in at the terms of your loan, rather than being annually increased in the form of monthly payments like if you were to rent. Locking in your housing costs can be incredibly beneficial as rents continue to increase substantially in Colorado.

Telling yourself to invest 2, 5, 10 or however much percent of your annual income to a savings account is more easily said that done, right? With the use of an amortized loan to own an asset you’re payments will be the same monthly for the life of the loan (unless of course you refinance or something). That being said, your returns are greater if the asset appreciates, but you’re also building equity with each monthly payment. Given the difficulty of saving money in more traditional savings accounts, forced savings of a mortgage is a valuable means for long term saving and financial goals.

Tax breaks provide most homeowners huge savings every year between the property tax deduction and the mortgage-interest tax deduction. These are two of the most valuable tax deductions available to filers. There are also benefits to selling your home because the profits from the sale are tax free, though there are some restrictions.

There are a million and one reasons to why you should invest your money in real estate, especially in the market we have today. Call our team to see if selling your home or buying a home is the right step to your steady financial future.
We are happy to provide a market analysis of your home!