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Even in this Fluctuating Market, There's Value In Owning a Home

Home Buyers are being cautious about buying a home because of the fear that prices are still dropping. There are values to be had, and when factoring in the loss factor of paying rent, a home buyer should just consider buying enough home to satisfy their living needs.

The initial purchase, commonly referred to as a Started Home, is usually a smaller but functional property, with 2-3 bedrooms, kitchen, living room and a bath. This is probably similar in size to a common rental unit. The essential difference, is that the owner now has an investment for themselves and their family.

Yes, there are some additional responsibilities such as yard and home maintenance, but this work maintains the equity, or potential profit, of the home. The end of month payment may be slightly larger than a rental property, but this is largely deductible from taxes at the end of the year and the rent is not. The monthly mortgage payment with a fixed rate will have very small changes if any to payments except for taxes if they are added to the payment. A renter's payments can change from 3-5% with each year, and that in itself can cause a renter to move much more frequently, and adds those costs as well.

A real difference in owning vs. renting is that owners have a much stronger sense of community than renters. Their mindset is one of pride, and it can make them friendlier and maybe even healthier.

Because of the stability of a home, children of home owners typically stay in school longer and do better in school. They are also more likely to participate in local activities and spend less time in doors in front of a television.

 With the stability of home ownership also comes a stability of a neighborhood. Communities of owner occupied homes tend to have lower crime rates.

Above photo of that happy family
courtesy of Lenn Harley, Homefinders,
with a chuckle!

Home ownership is a good thing. It's good for the economy, it's good for the family and it's a great way to appreciate wealth a little at a time.

Even in this Fluctuating Market, There's Value In Owning a Home