Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Value Report
Selling a home? Click here for a FREE Home Value Report
Is buying a home better than investing in a 401(k)? Today, we’ll go over some of the pros and cons of purchasing a home of your own compared to investing in a 401(k).
Pros
- Your housing costs will be locked in. Other things in your budget will fluctuate month to month, but this will be consistent in your budget.
- Owning a home is great for savings. Owning a home helps you create a budget and stick to it on a monthly basis.
- Great tax advantages. As long as you own the home, you will get those tax advantages.
Cons
- You will tie up some assets. Maybe you don’t want to concentrate all those assets in one place.
- You will have monthly or yearly expenses to pay for. Take things like lawn maintenance and repairs into consideration. Maybe you’re not prepared for those yet.
- Your stress can get in the way. Buying a home can be an extremely stressful process.
These are just some of the pros and cons you should consider if you’re thinking about contributing to a 401(k) versus buying a house. Ultimately, it depends on your individual situation. Some buyers opt to go $10,000 or $15,000 below budget when they buy a home so they can still contribute to a 401(k). If you have any questions, give us a call or send us an email. We would be happy to help you!
No comments :
Post a Comment