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.
Brendan Erne serves as the Director of Portfolio Implementation at Personal Capital. He has over 15 years of industry experience, spanning almost all levels of the investment process, including several years at Fisher Investments as an equity analyst covering the Technology and Telecommunications sectors. He also co-managed a large cap growth portfolio and co-authored Fisher Investments on Technology, published by John Wiley & Sons. Brendan is a CFA charterholder.
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