If you ever had any doubts about home ownership fueled by all the negative press going around, Claudette puts together some excellent reasons to reconsider.
A recent cover of Time Magazine featured the phrase, "Rethinking Homeownership" and dwelled on the downside of owning a home since we have been through some turbulent times.
This is doom and gloom of the worse kind. A home may not be the ultimate piggy bank that it once was, but does that mean we should become a nation of renters?
Before we turn in our welcome mats and put away the "Home Sweet Home" plaques we may want to look at the opportunity that is here and the reasons to buy a home right now.
- Quality of Life. A rental property is not going to give you the standard of living that home ownership will. Have you looked for a rental lately? Regardless of the location you are in, you will not find the same quality as in a purchased home.
- There are deals to be had. Yes, it difficult to sell a home right now - and that makes is easy to buy one. Many buyers have left with the tax credit expiration so the competition is not great for all of the houses that are languishing on the market. Take your pick. Prices are low.
- Loans are inexpensive. As recently as two years ago interest rates were over 6%. They are now in the low 4's. That is unprecedented.
- Tax Savings - You still have the mortgage interest deduction and can also deduct your real estate taxes. If you sell, you will get a tax break on your capital gains. All these items together make buying a much better deal than renting.
- It is a forced savings account. You may end up renting an apartment for a bit less than it would cost to buy a home, but that money is still going out the proverbial window. With your mortgage payment you are putting that money towards equity that will be there for you when you retire or decide to sell.
- There is a lot to choose from right now. With a glut of unsold homes, inventory is well above average levels. This means low prices as well as great choices.
- Pride of Ownership and Stability. You can decorate the kitchens and bathrooms exactly the way that you want them to be. Create an addition. Finish the basement. It's yours!
It was once said that homeownership could "change the very physical, mental and moral fiber of one's own children." Studies have shown that homeownership creates social stability and safer neighborhoods. There is also the fact that children actually do better in school when their families own the homes they live in.
None of this has changed.
So, is this still a good time to own a home? Absolutely!
Copyright 2010 "In This Day and Age - What Good is Owning a Home?"
Claudette Millette, Broker, Owner, The Buyers' Counsel - (508) 881-6230
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Gee, let's try stability. How about controlling the lifestyle and even living expenses/cost of living?
Jane ~ excellent post to re-blog. Aren't we supposed to buy low and sell high? The housing market is low, as are interest rates, so buy, buy, buy! Why should folks wait until the housing market stabilizes? The prices will be higher as will the interest rates.
Vickie, controlling cost of living is a good one. Our mortgage is not going to go up every year. That's for sure.
Dawn, that is something we need to get across.
People have to stop listening to all of the negative press concerning home ownership. If any one has any doubt about whether or not it's a good idea they should ask their parents and see what they have to say.
Victor, great idea.
Jane, what better investment is there....owning a home is the best.
Rebecca, there is none better.
Any venture capitalist will tell you that real estate is still the best investment!! Look for the deals they are out there. If you don't have a down payment, start saving because it is a great time to buy.
Leslie, it certainly is.
Jane, Thank God for home ownership. I do so everyday. I read the article in Time and could not find any reason to change my opinion.
Ideally the author would have recieved a well written rebuttal from every real estate agent in the nation. Maybe it's not too late.
I read Claudette's post. She did a great job with this one. And so did you for re-blogging it to share with a whole other group of readers.
Jane, thanks for reblogging this! I will comment on Claudette's blog, too. This is great information for people who are buying into all the negative press.
Charles, I didn't read it, and home ownership is not for everyone. But it is certainly not something to be discouraged for those who can afford it.
Craig, thank you.
Nina, it is. As I said above, if you can afford it it is a no brainer.
Jane,
I read the same blog and couldn't agree more. And this next generation needs a forced savings option, as we do against the difficulties of just breaking even... g
Gordon, I love the idea of forced savings. That is probably the best one.
Great re-post Jane. I bought my first home in 1987 and did so because I wanted my own place...mine, not my "landlords". Then again, it's probably also tied into why I have to work in an industry where I don't have a "boss" to report to. That equation left my landscape many years ago!. ;-)
Jane Jane Jane - I love your posts...hopefully our "friend" will be in escrow soon..or am I dreaming?
David, you and I. I cannot work for anyone either.
Angelica, little difficult to find a house for someone who doesn't return your calls :)
Jane,
I agree that owning a home is a good idea, I don't agree totally with #5. Some homeowners have recently discovered that they owe more than their home is worth and have no equity in the current market. That said though, with wise shopping and low interest rates, I believe it IS a good time to buy a home.
Judi, agreed, but we all know that for the long term that will change. It will come back.
Jane - we just had a short discussion about the Time mag article at a recent event, as well as the WSJ retort. I still haven't read the Time piece but probably should. Certainly owning a home is not right for everyone, but that's always been the case. Off to share my thoughts with Claudette.
Jeff
Jeff, you are right. Nothing has really changed, exception the perception.
All excellent points that Claudette has brought up, Jane...and what a great choice of re-blog! :)
Leilani
Leilani, thank you.
Jane, absolutely one of the most powerful presentations on the subject I've read
Janice, good isn't it.