Does it make sense to buy a house for the tax advantages? Apparently quite a lot of people think so. check out the comments on Renting is for suckers”. There are over a hundred comments. Quite a few of them say you should buy even if the housing market is heading down because “in the long run, its a good investment”. Funny, thats exactly what I heard today in the office. One of my co-workers wants to buy a house right now. So what if its going down. It can only go down a little bit and in the long run, it can only go up. Of course, in the long run we’re all dead and some people are always broke!
Not wanting to figure out how investing works and what rich people do to become rich and stay rich is a trait that most of my friends share. They also believe that buying a house for the tax write-offs is a good idea. Since when is spending a dollar to save 30 cents a good idea? If you can rent an apartment for half of what the mortgage is, why would you buy it? You’re better off buying a house in an appreciating area even if its out of state and holding that for a few years. With the depreciation, you’ll probably save the same if not more on taxes. And once the local market settles, you can sell the out of state property and buy a bigger house for less.