Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase. Your rate of return when buying a home is higher than most any other investment you could make. Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
Property taxes are deductible, too.
Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation. When you rent a place to live, you can certainly expect your rent to increase each year or even more often. If you get a fixed rate mortgage when you buy a home, you have the same monthly payment amount for thirty years. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage and interest rates aren t as volatile now as they were in the late seventies and early eighties. Some people are just lousy at saving money, and a house is an automatic savings account.