Some experts are now saying that buying a home may not be the great wealth builder it once was.
They say it may be better to rent a place to live and invest the intended down payment in the stock market. Yeah, like that’s such a sure bet.
Who decided that buying a home was meant to be an ‘investment’? Yes, most people expect that a home they purchase will appreciate in value.
In doing so, it may provide them with some wealth down the road. Money they can use for other things, like college tuition, vacations, and retirement. But are these the main reasons to buy a home? I think not…
A home represents stability. It is the foundation on which communities and families are built.
Further, if you do want to consider it as an investment, what investment can you use on daily basis without depleting the base? This is an investment you can live in, raise your family in, and manage on your own. I think that’s a pretty good deal.
Some say, now it is better to rent than buy. Maybe this is true for some, but not for all. What about family size, location, and increasing rents; to say nothing about having no control over the maintenance and upkeep of the property and the units. It’s more than just a simple financial equation. Much has to do with preference.
Mortgage lenders and Realtors need to push back on this conversation and continue to point out the benefits of homeownership. Things like:
- More personal space and freedoms
- Putting down family roots
- Stabilized monthly housing costs
- More control over one’s environment
- Ability to refinance and take equity without affecting the base or paying taxes.
All this while still building wealth!
For some, renting may be advantageous, for most, owning a home is still the best way to go in the long run.
Besides how much return on your investment you can get over the long haul on $6,000 (3% of a $200,000 sale price), you could probably do just as well, if not better, investing the money as a down payment, and living in your investment over the next 30 years.
So, for me, buying is still the best way to go; especially if you are raising a family. Realtors and mortgage lenders need to continue to spread this word.