It’s a question we get all the time: is buying a home a good investment?
A primary home can be a wonderful investment, especially if you enjoy living in it.
Over the last 30 years or so, real estate has appreciated at a rate very close to that of inflation – a rate that is less than the historical appreciation of stocks*. Even so, the leverage of a mortgage and the tax benefits of the interest deduction can still make owning a home a good idea, as long as you can afford it and you plan to live in it for at least six years.
Do you think of buying a home as a good investment? In this video, we ask San Franciscans what they think, and then give a breakdown of what to consider when purchasing a home as an investment.
To learn more about the home-buying process, and how purchasing a home can fit in with your overall financial goals, read our free First-Time Home Buyer’s Guide.