Some people are questioning if the time is right to buy a home. After all, prices have gone way up and we are almost certain to see another housing crisis soon, right?
Actually, not so fast! There is no economic support for that concept. People are working, workers are making more money, there is a shortage of housing and there are many areas where there is no available land to build more homes. These are all realities of today and suggest continued strength in home prices. Of course, there will be the normal fluctuations in the market but no reason to expect a “crash” anytime soon.
Owning a home has positive effects for families other than financial. These families tend to have a more stable environment and thier children do better in school and tend to shy away from crime. In general, they have a better quality of life. I believe quality of life is a very strong argument and has tremendous, if not priceless, value.
So, what about the purely financial side of it?
At this point, home values have gone up over time. While short term ups and downs have created issues, those who own for the long haul have fared very well. While the home’s value has increased over time, you have made payments which have created additional equity. At the very least, a portion of your payments will come back to you in the end. As a renter, you will never see that money again.
Those of us who bought a home for the long term simply ride out the market gyrations and stay the course. We do not get involved with timing the market for financial gain. Our primary concern is providing the best we can for our family and we make decisions regarding moving based on our family dynamics.
If you still question the value of owning vs renting, how has that worked out for you? Can you honestly say you are better off? I doubt it.