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I remember reading in the Wealthy Barber that while many people feel that buying a home is the best investment that anyone can ever make, that’s not always necessarily true. I’ve always carefully considered that advice as I’ve moved along. That being said, there’s another saying. Why rent when you can own. If you’re expecting to stay where you are for some time, which we were and interest rates are low, which they were when we bought, buying a home makes all the sense in the world. You can still get a good rate today, you just have to spend a bit more diligent when you compare mortgage rates.

The thing to keep in mind while looking for a home as an investment is exactly that. Do you want it to be an investment or not? If you’re just looking to flip houses for good turnaround on your money, you want to look for old dingy houses. If you’re looking for something beautiful to live in, a place to call home, then you want something new with a sense of community like the homes at Asheville real estate. You see while the former is still called an “investment” by most, it’s not a traditional investment. Most people don’t cash out their homes. For example if your home doubles in value, you’re not going to have that money to do anything with. But there are still huge advantages here.

The #1 advantage is that your mortgage will only go down. While your rent tends to increase at least a little every year in most cities, the day you buy your home, you’ve agreed to pay a given amount and that’s not going to change. Toss inflation into the equation and ten years down the road, you’ll still be making roughly the same mortgage payment while people who were renting will be paying a lot more. Then there’s leverage. While you can’t directly extract the additional value of your home when it increases, your equity does grow. That means that you can borrow money against your home. While it’s not something I would recommend as a sound financial strategy, the equity in your home can help you get an important loan that you really need in a pinch.

Finally, there’s the best advantage of all. Having a place to call home, may not bring any monetary benefits your way, but it’s something that many of us need in our lives. Most of us are not very nomadic at heart and we prefer to have a beautiful home that keeps us warm in the winters and shelters us from the rain.

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