Top 10 Reasons to buy a Home

“Enough with the doom and gloom about homeownership.”– WSJ 9/16/2010
The Wall Street Journal on September 9, 2010 printed an article on the ten reasons to buy a home. I thought it would be advantageous for those people sitting on the fence to elaborate on each point made by the WSJ.

7. It’s risk capital.
The definition of risk capital is the extra money that one has in order to invest in high-risk investment vehicles. Or money you can afford to lose. Instead of investing in a risky venture, stocks, etc. the money could be used in buying a home, improving a home, or buying an investment property. Housing continues to be a better investment over the long term AND instead of a house, you can call it “home”.

8. It’s forced savings.
Paying a monthly mortgage includes paying down the principal amount of the loan. In essence, this is forced savings. Historically, homes have appreciated over time and even with the housing “bubble” homes bought before the bubble of 2007-2008 have retained their value. Thus, paying a mortgage and its principal amount is factored in the proceeds when you sell your home.

9. There is a lot to choose from.
In the Charlotte region, there are 7,175 single family homes, townhouses and condominiums on the market BELOW $150,000! The buyer does not have to make concessions BUT the best located and well priced home will not stay on the market.

10. Sooner or later, the market will clear.
Once the foreclosures are worked through and the job market gains momentum, housing will stabilize and appreciation will again be the norm. Again, the “bubble” was created by unethical lending practices and a false sense of the market depth was created. A home was considered a house as an investment. We will again return to our values and our home will again become our American Dream.