An investment is the investing of money or capital (such as a home down payment) in order to gain profitable returns, such as interest, income, or appreciation in value. Buying a home allows you to save on the monthly cash you’d spend renting a comparable property. Instead, you’ll have a somewhat fixed, long-term housing cost thanks to your fixed mortgage payment, until you pay it off, and then you’ll have no mortgage payment at all. You’ll also benefit through appreciation in your home’s value, possible tax advantages, mortgage amortization on the loan and not being burdened with housing costs in retirement.
The most important consideration when buying a home is your ownership time frame. Basically, the longer you own it, the better an investment it will be for you. The optimal holding period for most real estate purchases whether it’s your personal home or a rental property, is for a lifetime.
Many homes do not have the best investment rates of return and some, like luxury properties, should generally be avoided. However, two important aspects of investing in a personal residence do add value to your wealth picture:
- A monthly mortgage payment requires you to do something most Americans find challenging: Saving the money they earn.
- Individuals who retire with a paid-off home (or rental properties) are more likely to live a comfortable retirement than people who must pay rent or a big mortgage payment each month after they retire.
For those two reasons alone, most personal residences are a good investment, provided you hold them long-term. However, you must be sure to buy a home with a mortgage you can comfortably afford on your income, or that you can rent out later in life to a tenant who can pay the mortgage for you.
If you are looking to buy or sell in the North Carolina Mountains in and around Ashe County, and you value competence, integrity and efficiency, call one of the A1 Mountain Realty professionals today! Do you dream of owning your very own getaway in the mountains? Let our Western NC Real Estate Agents show you Blue Ridge Mountain Real Estate and NC Mountain Properties near the NC Blue Ridge Parkway and the beautiful New River with picturesque landscapes and beautiful views. Browse our listings from our website (www.a1mountainrealty.com) and see if there's anything that interest you , if not you can do a MLS search for any High Country Real Estate.