(December 6, 2016 at 2:39 pm)Shell B Wrote:(December 6, 2016 at 1:22 pm)Cthulhu Dreaming Wrote: The question of whether you should pay cash (for those able to) or finance is a complex question that depends on the whole financial picture.
For my situation, rent vs own was a no-brainer, the tax advantages result in a situation where my housing costs are lower than any rental in the region - I could scarcely rent half an apartment for the same - and I have a highly leveraged investment in an are with strong real estate growth.
It's a huge enough decision that consulting a financial planner is advisable.
We intend to talk to a fiduciary about our retirement plan and buying a home.
The real estate industry likes to tout the tax deductions on mortgage interest but the majority of tax filers (68%) take the standard deduction without itemizing.
http://taxfoundation.org/blog/who-itemizes-deductions
I've owned since 2003 and I've never deducted my mortgage interest. I've only used the standard deduction. So buyer beware.
My property is still underwater from the housing crash. I'll sell it when I can. I'm very skeptical about buying again as my state - California - has boom and bust cycles fairly regularly, probably going back to the Gold Rush.
If you're going to buy property, make sure you go in with your eyes wide open.
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