Read the news lately? What are your thoughts on the housing market? Truth being, the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.
5 reasons why homeownership trumps renting a house:
You can be your own landlord! The bank can only kick you out if you don’t pay. A landlord can be much less dependable. They could even decide to sell the property or choose to live there themselves. By owning the home, you are in control!
Paying the principal on your mortgage is forced savings! Home prices could possibly fall further, but it is also possible that your 401(k) could lose value as well. In the long term, both are likely to enjoy modest gains in value.
Fixed-rate mortgages never rise! Eventually you pay them off with record low mortgage rates! People buying now are really locking into real bargains.
Good schools! Family sized rentals are harder to find in areas with excellent public schools.
Spacious properties in pleasant and desirable neighborhoods! Sizable homes in attractive communities are almost always owned – not rented. Even if you are single this can help with resale value.
Source: The New York Times, Ron Lieber (08/27/2010) http://www.realtor.org/RMODaily.nsf/pages/News2010083001?OpenDocument
