The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction. Here are some of them:
· Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves. · Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value. · Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains. · Good schools. Family-sized rentals are harder to come by in areas with excellent public schools. · Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented. Feel good about owning!
Source: The New York Times, Ron Lieber (08/27/2010)
If you haven't yet taken the time to check out House Logic you should. It is a wealth of information. From how to better your home, take advantage of tax credits or strengthen your commumity, it is a site worth visiting. Check out the seasonal maintenance guide for the upcoming season.
.. review the Cost vs Value report in your region by Remodeling Magazine. It will give you an idea of the cost you will recoup on a given project. Bottom line is, consider how long you will be in the property before doing any major project.
There has never been a better time to do it and we all could use a boost in our home equity. Even 1 extra payment a year can reduce your 30 year mortgage by 6 years! (That is based on a 30 year fixed mortgage of $200,000 @ 7 %.) Did I mention that is a savings of $100,000 in interest? Plan on using your tax return or next bonus for this purpose. How nice would it be to retire owning your home free & clear? Check out this mortgage payoff calculator & make the commitment to yourself today!