Wednesday, September 29, 2010

Hyperbole is for Magazines, not Homeowners


The cover of a recent Time magazine has the byline that "Why owning a home may not make economic sense." That kind of statement, one that goes so against conventional wisdom that it makes your raise your eyebrows, helps sells magazines because it is dramatic.

Unfortunately, it is also the kind of drama that level headed people looking to invest in their family's futures need to avoid. Even the Wall Street Journal found that cover too much to take and wrote an article on why the Time Magazine article is just plain wrong.

The article goes into 10 reasons why it's good to buy a home now, summarized below.
1. You can get a good deal.
2. Mortgages are cheap.
3. You'll save on taxes.
4. It'll be yours.
5. You'll get a better home.
6. It offers some inflation protection.
7. It's risk capital.
8. It's forced savings.
9. There is a lot to choose from.
10. Sooner or later, the market will clear. Demand and supply will meet.

Read the article for the explanations, but suffice it to say that level headed thinking in times of troubled economies is where great opportunities are to be had, and investing in the future of your family in a house that does not overextend your means is still a great idea right now.

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