May
2
Make Sure You Can Own A Home
May 2, 2008 | 2 Comments
Make Sure You Can Own A Home
…. even if you do not want one now.
I am a big advocate of home ownership. In the US, around 70% of the families own their residence, and for a reason: it is the easier step towards financial independence. I have even advocated my tenants to buy a residence – not the best business strategy, I must stay: I have lost two tenants to home-ownership. I am not the only one advocating homeownership: Uncle Sam does, in the way of a better tax refund for most homeowners, due to the interest and real estate tax itemized deductions.
For as many home owning benefits as there are, I still get excuses from friends, family and coworkers that haven’t purchased their own home. Some of them say they don’t want to tie themselves to a property yet – too young they say. Others say that the real estate markets have peaked and there is some kind of end of the world bubble bursting ahead. And there are those who have destroyed their credit and are rebuilding it before they can buy one.
At this particular point in history I have people who suggest that the current Mortgage crisis shows that it isn’t a good time to buy a home. (I believe there couldn’t be a better time, but that is beyond the scope of this article).
Whichever the reason for not buying a home, if you do not have a home you must make sure you can buy one!
This means that you should be building up your investments so that you can put a sizable down payment (20%) on the purchase of a home when the time is right. You should also be taking care of your credit so that it costs you the absolute minimum to purchase the property.
Not having your own dwelling may or may not be the right action at every particular point in your life. Not trying hard enough to have the means to acquire a property is one of the most financially irresponsible things someone can do.
If you had been saving already, even if you hadn’t bought one because they where too expensive, you may have been ready to buy one now that they have dropped a bit in price. If you think they will drop a bit more, then save harder, as that will mean that you will be able to buy an even better/nicer/bigger home.
Other article from the Original Blog Where These Where Posted: the Anes Weblog: Why Buy a Home – 5 Good Reasons.
Related Posts:
Comments
2 Comments so far
Subscribe
I agree! If more people would listen and have a plan BEFORE they buy we would have fewer proplr in trouble!
Hi there
I run a site Stock Market for Beginners ( http://stockmarketforbeginnersguide.com ).
I believe it would be beneficial for both of us if we do blogroll link exchange.
Here is the Dsecription for the Link Exchange
Title Stock Market For Beginners
URL http://stockmarketforbeginnersguide.com
thanks
John Border