Even the worst housing slump since the Great Depression can’t remove the long-term benefits of homeownership. Meanwhile, the combination of lower prices, cheap mortage rates, and a special tax perk from Uncle Sam has produced some of the most favorable conditions for home buyers in years. And without the need to unload one property to purchase another, first-time home buyers will find themselves in a position of particular strength this year.
“When you own a home, you are slowly but surely building strength in an asset that you can utilize to your great benefit at some point. Homeowners who accumulate enough equity can borrow against the property to put Junior through college, or they can sell it down the road to purchase that retirement bungalow in Boca Raton, Fla. And the federal tax breaks make home mortgages less costly than other forms of debt. It is a long-term forced savings plan.” Keith Gumbinger of HSH.
