I've heard from some of my friends about two articles, one in the New York Times and the other in Time Magazine that seem mostly critical of home buying (The Time Magazine article is the cover story of the September 6, 2010 issue). Here are the articles:
http://www.nytimes.com/2010/08/23/business/economy/23decline.html?_r=1 http://www.time.com/time/business/article/0,8599,2013684,00.html While up-playing the issues some people are having affording their existing home, the articles in my opinion downplay the two super beneifts of homeownership:
1.
Pride of ownership. Instead of living by a landlord's rules, you can create a home well suited to you and if you have a family, their needs. There's a strong sense of belonging in a community and adding to its improvement. You can't quantify pride of ownership so it doesn't show up in the often quoted somewhat negative homeownership statistics.
2.
At some time in the future your house payments stop. You can't say that about renting (which is the alternative if you don't buy). And, if you're disciplined, you can pay off your home much sooner. A payment free home is truly a blessing in one's later years. Plus renters have a harder time getting into some of the best areas. It's much easier for home buyers in my opinion.
The mistake made in anti-ownership articles is that they treat one's personal residence as an investment. The articles are in effect saying that one's personal residence is not a very good investment. Sorry, but one's personal residence is NOT an investment. Even the dictionary defines investment as an outlay of money for profit or income. Most people don't buy a home for those reasons. It's usually to put down roots, to raise a family if they have one or enjoy life in a certain geographic area.
Truly, a real estate investment from my point of view is mainly for the production of income. If it doesn't produce income, it's NOT a real estate investment. One's personal residence usually doesn't produce income but takes income from the family budget to keep it going. Therefore it's in the same category of necessities like clothing or cars. And, whoever expects those items to rise in value? If your personal residence goes up in value it's a BONUS, not to to be relied upon to justify homeownership.
Now, if you're looking for a real estate investment, consider well priced multi-family properties like this one:
http://www.320043rdstreet.epropertysites.com This property has the potential to create a very satisfying return on your capital outlay.
Homeownership still makes sense for forward-looking individuals who don't treat it like a get quick rich scheme. And these days with super low asking prices and historically low mortgage interest rates it's actually possible to buy a home with monthly payments LESS than some pay in rent, especially when you take into account the tax benefits (ask your tax advisor).
If you're renting now, consider buying a home within the next 30 days while things are super favorable in the marketplace. It costs you nothing to discover if this is right for you. If you own a home, consider moving faster to free and clear ownership. Contact us, we'll show you how no cost, no obligation.
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