Amid rumblings that real estate speculation isn’t as solid an investment as it’s been in the past, a voice rings clear that owning your home is still the right move. And thank goodness for that! After being spurred to action by the recent cover of Time magazine entitled “Rethinking Homeownership,” Brett Arends of The Wall Street Journal puts forth ten reasons why buying is still a good call.
Not Every Insight Must Be Defeatist
Being optimists ourselves, we find Arends’ assertions reassuring. His reasons range from inflation protection to the simple fact that “It’ll be yours.” One note of pragmatic optimism struck a particular chord with us: The housing market will clear. From The WSJ:
Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening.
Is owning a home one of your financial goals? Why or why not? Tell us in the comments.
A Home Is Invaluable
We recommend the three-year rule—if you’ll be in residence for under three years, rent. More than three years, buy. Because the most valuable part of investing in a home isn’t the fact that mortgages are a tax write-off or that homes should appreciate in value. The most valuable part is that it’s an unparalleled security—it’s a place to live. Everyone needs a home base, and by owning yours, you know that you can always go home.
Read all ten reasons HERE.