Reasons for buying a home (cont)
September 22, 2010
Here is continued quoting of Brett Arends' column in the Wall Street Journal in which he listed 10 reasons to buy a home. I previously listed his numbers 1, 2, 3, and 4 reasons. Today, I will share Mr. Arends' numbers 5, 6, 7 reasons.
" You'll get a better home. In many parts of the country it can be really hard to find a good rental....Generally speaking, if you want the best home in the best neighborhood, you're better off buying." (Just as a comment, in our area, there are some great rentals available due to investor activity in the foreclosure arena. However, with prices and interest rates as low as they are, a mortgage payment can be very competitive with a rent payment, with the added advantages previous cited in Mr. Arends' numbers 1, 2, 3.)
"6. It offers some inflation protection. No it's not perfect. But studies by professor Karl "Chip" Case (of Case-Shiller) and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if your young and raising a family and thinking about the next 30 or 40 years. ..."
"It's risk capital. No, your home isn't the stock market and you shouldn't view it as a way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities - for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy - if it happens - and still managing to sleep at night."
I have chosen to quote Brett Arends' column because I believe his list pretty well covers the gamut of buyer's various motivations. Remember, I am quoting Brett Arends' column and his list may or may not be your list or my list.
Here is continued quoting of Brett Arends' column in the Wall Street Journal in which he listed 10 reasons to buy a home. I previously listed his numbers 1, 2, 3, and 4 reasons. Today, I will share Mr. Arends' numbers 5, 6, 7 reasons.
" You'll get a better home. In many parts of the country it can be really hard to find a good rental....Generally speaking, if you want the best home in the best neighborhood, you're better off buying." (Just as a comment, in our area, there are some great rentals available due to investor activity in the foreclosure arena. However, with prices and interest rates as low as they are, a mortgage payment can be very competitive with a rent payment, with the added advantages previous cited in Mr. Arends' numbers 1, 2, 3.)
"6. It offers some inflation protection. No it's not perfect. But studies by professor Karl "Chip" Case (of Case-Shiller) and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if your young and raising a family and thinking about the next 30 or 40 years. ..."
"It's risk capital. No, your home isn't the stock market and you shouldn't view it as a way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities - for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy - if it happens - and still managing to sleep at night."
I have chosen to quote Brett Arends' column because I believe his list pretty well covers the gamut of buyer's various motivations. Remember, I am quoting Brett Arends' column and his list may or may not be your list or my list.
posted by shirley harry at 8:47 AM
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