Comments on: Why is buying a house such a good investment rather than a waste of money?

By: afiesha s

afiesha s — Mon, 22 Dec 2008 03:53:50 +0000

Hey there, you should check out this site, it might be able to answer your questions better.

By: src50

src50 — Fri, 19 Dec 2008 02:38:47 +0000

People buy houses for many reasons other than strictly for “investment.”

By: Heather V

Heather V — Wed, 17 Dec 2008 22:07:57 +0000

First the house can appreciate in value making it worth more than its purchase price. However, in today’s market that may not be likely. Second you do get an income tax deduction for all interest paid on a mortgage. Depending on your income/tax bracket this could be a considerable amount of money. Third, some of the money is indeed paid towards the principle of the loan, this equity grows over time whereas a rented property is of no value to you at the end of the lease. Lastly, paying on a mortgage regularly and on time is a great way to improve your credit rating. The better this rating the lower interest rate you can get on car loans and credit cards. This can save you an enormous amount of money over time.

By: Lesley

Lesley — Mon, 15 Dec 2008 13:33:41 +0000

Wow, only $2500 for property taxes on a 220k house? That is dirt cheap if you ask me. Anyways, if you don’t want to pay all that interest, save up money so you can pay more up front and borrow less to buy the house. In any event, houses are usually good investments because instead of paying rent on something you will never own, you will ultimately own the place free and clear, OR it will appreciate enough to warrant selling it and make a profit on it so you can buy a bigger place. If you think it is a waste to pay PMI and interest, then don’t buy a house with less than 20% down, no one is forcing you to do so, so don’t do it. You can save money up first and then buy a house once you have the funds to do it in a way that won’t result in paying lots of interest. But taxes and home owners insurance are going to be an expense regardless. But that would still be cheaper than rent.