6 Financial benefits of home ownership

by Property Management Software on October 15, 2011

6 Benefits of Home Ownership

6 Benefits of Home Ownership

Is it time to buy that house we always wanted, or should we wait until prices fall further?

As a financial planner, I’m often asked that question and it frustrates me to hear otherwise rational people talking about home ownership the way a speculator might talk about the price of gold. Nobody needs gold, but everyone needs a place to live.

If you’ve found the house you love, you intend to make it your home for the long haul, and the financials add up, why would you wait?

Talk about the collapse of real estate prices destroying the American Dream makes good headlines but it simply isn’t true. Yes, it may feel bad to know that the house you bought in 2006 has lost a big chunk of its market value. But if you can afford the mortgage payments and upkeep, you bought it intending to live there for a decade or more, and you leverage that asset to its best advantage as part of your financial portfolio, the state of the real estate market is irrelevant.

Trying to time the housing bottom is as much folly as trying to time stocks or any other investment vehicle. In fact, it’s greater folly because if housing prices do fall further, it’s likely to be because mortgage rates are rising, which would mean that over the long term that slightly lower price you may have paid could end up costing more in carrying costs than you saved. Furthermore, how much lower could prices go? The economy can’t get much worse than it’s been in the past three years and the difficulty in getting a mortgage couldn’t be much greater.

Find out the reasons to buy that dream house now!  CLICK HERE.

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