Your home as an asset

When you buy a house or condominium, you're growing an asset that can strengthen your financial future.

A solid long-term asset
Over time, home ownership can build wealth. However, a Permanent Change of Station (PCS) move may challenge your family and your finances, so plan accordingly when you consider home ownership as a long-term asset.

Significant tax advantages
Within limits, homeowners may be able to deduct mortgage interest, mortgage insurance, and property taxes from their tax filings. When you sell the house, there may be a capital gains tax exemption available for primary residences. Check with a tax professional to see how these benefits may apply to you.

A miniature house made out of fifty dollar bills.

Historically, home prices rise
While home prices have seen recent declines in some areas, home prices generally appreciate, or rise, over time. Historically, most homeowners who own their property as a long term asset have seen the value of their asset increase.

Housing markets are local, not national
A home’s value reflects local conditions, so instead of worrying about national averages, consider the prospects for economic growth, housing supply, and housing demand in your local area. Talk with real estate professionals in your community to get an assessment of local conditions.

Timing the housing market is difficult
Naturally, you’d like to buy a home when prices are at their lowest point, and then sell it years later, just as home values and prices reach some peak. But don’t count on it. Successfully “timing the market” owes much more to luck than to skill. A more sound strategy is to have more time in the market. In other words, if you plan to purchase a home for the long-term, there’s usually a better chance that your asset may increase in value if you buy rather than wait on the sidelines.

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