From what we see in the media one might think that the value of home ownership is now questionable.
Could it really make more sense to rent vs.
buy your own home? From my perspective the primary factor has always remained the same regardless of the current real estate economy - how long do you intend to stay in the home? The longer the time period, the less relevant are temporarily declining market values and the more expensive renting becomes.
According to the National Association of Realtors (NAR) real estate appreciates on average 5% per year and doubles in value approximately every 10 years.
Let's say you purchase a home for $200,000.
00 and put 20% down.
With an average appreciation of 5% the home will be worth $10,000.
00 more in 1 year for a approx return on your investment of 25%! If you put less down the ROI may be even higher.
Can you really do better in another long term investment? How's that CD ladder working for you? The tax incentives for ownership have become even better.
In addition to the deductions for property tax & interest expense, mortgage insurance joined the list of approved deductions in 2007.
Our government is effectively subsidizing your home purchase.
There are also many intangible benefits to home ownership.
Your primary residence is fist and foremost the place you live and perhaps raise your children.
It's likely to offer your family more square footage on a dollar for dollar basis.
The ability to personalize YOUR space is much greater etc..
Perhaps it's time to put emotions aside and letting logic prevail?
Could it really make more sense to rent vs.
buy your own home? From my perspective the primary factor has always remained the same regardless of the current real estate economy - how long do you intend to stay in the home? The longer the time period, the less relevant are temporarily declining market values and the more expensive renting becomes.
According to the National Association of Realtors (NAR) real estate appreciates on average 5% per year and doubles in value approximately every 10 years.
Let's say you purchase a home for $200,000.
00 and put 20% down.
With an average appreciation of 5% the home will be worth $10,000.
00 more in 1 year for a approx return on your investment of 25%! If you put less down the ROI may be even higher.
Can you really do better in another long term investment? How's that CD ladder working for you? The tax incentives for ownership have become even better.
In addition to the deductions for property tax & interest expense, mortgage insurance joined the list of approved deductions in 2007.
Our government is effectively subsidizing your home purchase.
There are also many intangible benefits to home ownership.
Your primary residence is fist and foremost the place you live and perhaps raise your children.
It's likely to offer your family more square footage on a dollar for dollar basis.
The ability to personalize YOUR space is much greater etc..
Perhaps it's time to put emotions aside and letting logic prevail?
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