Wednesday, September 29, 2010

Hyperbole is for Magazines, not Homeowners

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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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Wednesday, September 1, 2010

Why buy now?

http://empowerhomeloans.com/blog/wp-content/uploads/2009/09/HouseHands.jpg

This is an interesting piece from a blog called "Get Out of the City!" which talks about a why it is a good time to buy a home now. The article is interesting in that it doesn't shy away from the fact that we are in a bad place in terms of the economy, and examines why it is still an excellent time to buy. Here are a few highlights:

  • Buying is still smart in this economy if you believe that you will be in your home long term. Purchasing with the idea that you will turn the house in under 5 years is not a good idea unless you really do need to move.
  • If you know that you will need to buy a home within the next 2 years, it will be better for you to make the move now if you can. Why? Because mortgage restrictions are getting tighter and tighter. Prices are going down, but increased restrictions on mortgages may prevent otherwise qualified buyers from purchasing in the future.
  • [M]inor fixes to your home will increase its marketability and value. Simple things like cleaning the carpets, removing the clutter, painting and simply keeping the yard looking nice can raise the value by up to $10,000. Make the effort. It will pay off.


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