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Originally Posted by Mister Coaster
Every situation is different. The tax savings ARE real and immediate. That doesn't mean that its the best or only reason to do it. Over the long haul, there is virtually no way to lose money on a house. Even if prices/values do go down after the purchase, as long as ASU2003 can afford the payments and ride out the slump, its just a paper loss. Only selling after a decrease in value would do any harm.
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You are so right.
It just kills me the way everyone else is saying not to buy a house because there's a slump or that the payment is higher than renting (only if you're dumb enough to do that!). They must have bought high and sold low!
I've made money on every house I've owned and I've owned several over the past 30 years. I did start with a $2K down payment and my last "investment" down payment was over $200K. That's strictly profit from buying and selling my own homes.
I obviously don't sell when the market is low which is the same principle most people take when purchasing stocks, etc. I figured out at an early age that renting was dumb but I never had a house payment that was higher than the rent I would have paid. Too many people are house poor, meaning they can afford the house payment but not afford to put furniture in it.
Speaking of making money, I've more than doubled my down payment and any other improvements over four years on each home. If you put $10K into a $100K home and make $10K more when you sell it a few years later you've done much better than 2% on a savings account or 4% on a money market!! I've also enjoyed the tax advantages and didn't live around renters that don't care about where they live because it's not there home.